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Articles tagged: Buying a Business
A Tale of Competitive Bidding and Pre-emptive Bids
An owner selling his business gets 3 high pre-emptive bids. Should he take a deal or allow the competitive bidding process to continue? Read More
A Visual Guide to the 5 Legal M&A Deal Structures
There are five basic M&A deal structures, including four share acquisition methods and one asset acquisition method. What are the benefits of each structure? Read More
Determining Value – Choosing a Business Appraiser
Don’t Leave Valuation to Chance Valuation is the determination of the worth of an entity or item. According to Erin Hollis “A valuation can be as loose as a guess, to a ‘back of the envelope’ calculation, to a formal opinion rendered by a third-party professional business valuation expert”. Having the right valuation of your […] Read More
4 Acquisition Financing Structures for Buyers
When buying a business, buyers may use any four acquisition financing structures: cash purchase, third-party funding, seller financing and stock swaps. Read More
When Does an Asset Acquisition Become a De Facto Merger?
Asset acquisitions are presumed to be free and clear of claims against the seller. But liabilities can pass to the buyer, resulting in a de facto merger. Read More
Purchase Agreement Essentials – Boilerplate Provisions Terminology
In a purchase agreement, boilerplate provisions clarify the terms of the contract, who has contractual rights and how disputes are handled. Read More
Asset Sale vs Share Sale: Which Seller Approach Should You Choose?
An asset sale and a share sale have different implications for buyer and seller regarding taxes, liabilities and more. Learn the pros and cons of each. Read More
The First Step to Purchase: The Letter of Intent
The letter of intent to purchase or acquire a business is the first step in the M&A process. As a seller, these are the terms to look for in an LOI. Read More
When Should a Seller Sign a Letter of Intent?
A letter of intent is used in the purchase and sale of a business to set forth the framework for the negotiation of definitive transaction documents and closing of a transaction. Normally, a letter of intent does not create a binding contractual obligation to purchase or sell the business. However, a non-binding letter of intent […] Read More
Reading and Writing a Letter of Intent
Think of the LOI as akin to a father asking his daughter’s date, “What are your intentions with my daughter, young man?” but doesn’t have to be that intimidating. Read More