Vendor Due Diligence in M&A Transactions: A Seller’s Guide to Reports and Service Providers
31 March 2023
By Zachary Cefaratti
Embarking on a mergers and acquisitions (M&A) process is a complex, costly and time-consuming endeavor. To ensure a smooth and successful transaction, sellers often rely on various vendor due diligence reports and service providers to prepare for negotiations with potential buyers. Sellers often get different recommendations from different advisors about what reports are needed, the scope of those services, and the costs.
Asset Sales vs. Company Sales in M&A: Key Differences, Factors, and Pros and Cons
30 March 2023
By Zachary Cefaratti
Mergers and acquisitions (M&A) transactions can take various forms, with asset sales and company sales being two of the most common structures. Each approach has its unique characteristics, advantages, and disadvantages, making it essential for both buyers and sellers to understand their implications.
Closing the Deal: The Importance of Face-to-Face Negotiations in M&A Transactions
29 March 2023
By Zachary Cefaratti
Mergers and acquisitions (M&A) transactions can be intricate, involving multiple parties such as buyers, sellers, lawyers, and advisors.
Navigating M&A in Emerging vs. Developed Markets: Understanding the Key Differences and Challenges
27 March 2023
By Zachary Cefaratti
Mergers and acquisitions (M&A) activity plays a significant role in shaping the global business landscape, with transactions taking place across both developed and emerging markets. However, the dynamics of M&A in these two types of markets can vary considerably.
M&A Valuation Methods: DCF, Multiples, and LBO — Why Multiples Often Prevail
24 March 2023
By Zachary Cefaratti
In the complex world of mergers and acquisitions (M&A), arriving at an accurate and fair valuation is crucial for both buyers and sellers.
Seller’s Guide to Earn-Outs: Best Practices for Structuring Earn-Outs to Minimize Conflicts in M&A Transactions
22 March 2023
By Zachary Cefaratti
Earn-outs play a crucial role in bridging valuation gaps and aligning interests in mergers and acquisitions (M&A). However, if not structured carefully, they can lead to conflicts and challenges post-transaction.
Thinking Ahead — Negotiating Completion Accounts for success
19 March 2023
By Zachary Cefaratti
In a completion accounts closing mechanism, the final purchase price is determined based on the target company’s financial position at closing, with adjustments made for working capital, net debt, and other relevant financial items. For sellers, there are several terms you can negotiate to ensure a more favorable outcome.
Mastering the Art of M&A Auctions: A Guide to Different Auction Process and their Pros and Cons - Zachary Cefaratti Opinion
19 March 2023
By Zachary Cefaratti
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.
Completion Accounts vs Locked Box: Evaluating Closing Mechanisms in M&A Transactions
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.
Crafting the Perfect Target Buyer List for a Successful M&A Process
17 March 2023
By: Zachary Cefaratti
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.