When the seller decides to follow an auction process in mergers and acquisitions (M&A), it is pivotal to structure the auction appropriately. Auctions facilitate competitive bidding, helping sellers maximize value for their business. In this article, I will share the most common types of auction processes used in M&A transactions, the advantages and disadvantages of each, and the factors to consider when deciding which approach to take.
17 March 2023
by: Zachary Cefaratti
In mergers and acquisitions (M&A), the closing mechanisms plays a crucial role in determining the final purchase price. Two common methods for settling the purchase price are completion accounts and locked box mechanisms. This article will discuss the advantages and disadvantages of each approach, factors to consider when choosing the most suitable option, and statistics about their prevalence in M&A deals.
In mergers and acquisition (M&A), one of the most crucial steps for a seller's financial advisor is creating a well-researched list of potential buyers. This process requires careful consideration and qualification to ensure that the right buyers are engaged while minimizing the risks associated with unqualified buyers, such as wasting time or leaking sensitive information about the company.