The third form of M&A transaction is the merger in all its forms. A merger generally achieves the same result as a stock purchase transaction but is usually a simpler transaction. It avoids many of the obstacles incident to dealing with a large number of shareholders. Absent special super-majority voting requirements in either party’s articles […]
M&A the Easier Way: The Stock Purchase Transaction
The first type of merger and acquisition (M&A) transaction we introduced you to was an asset purchase transaction. The second type of M&A transaction you should be aware of is a stock purchase transaction. The next type of M&A transaction we will introduce you to is a merger. While each form or transaction has its […]
Asset Purchase Transaction: Pros & Cons
The advantages to the buyer of purchasing assets, as opposed to buying stock, can be considerable. First, with an asset purchase transaction, as opposed to a stock sale, a buyer can go a long way toward eliminating the risk of being saddled with the target’s company’s unwanted and unknown liabilities. Second, if the target company […]
Asset Purchase Transactions Checklist
Perhaps the most common form of merger and acquisition is the asset purchase transaction. In this type of transaction, the buyer identifies the specific assets of the target company that it wishes to purchase and carves out those assets from the target’s portfolio of assets. Frequently, any liabilities associated with the purchased assets are assumed […]
Merger & Acquisitions Best Practices
According to a recent Wall Street Journal survey mergers and acquisitions (M&A) are poised to increase in 2013. See the WSJ press release. The Journal’s survey, which tilts towards Silicon Valley and Northern California, indicates that deal makers attribute the potential for increased M&A activity throughout the remainder of 2013 and into 2014 to the […]