News and Articles
M&A Activity Recap: January 2020
It looks like a busy start to the new decade for Australian dealmaking, with a flurry of M&A activity occurring in January 2020. Early January’s transactions appear the most active for more than three years. This momentum has been driven by acquisitions activity in both the SME market as well as larger transactions.
Hire a trustworthy investment bank experienced in M&A
The inimitable value which an experienced M&A advisor can bring in order to achieve a highly successful deal is explored in this article. Companies that have not been involved in previous M&A transactions commonly make avoidable mistakes that can result in under-pricing, unfavourable terms or a failure to complete.
Not neglecting the day-to-day
Acquisitions can distract managers and employees from their day-to-day roles because of the amount of time, energy and attention they take. As a result, customer experience is often overlooked which may deepen into growth and operational issues.
A key element of every M&A transaction
Companies that have not been involved in previous M&A transactions commonly make mistakes that result in under-pricing, unfavourable terms or a failure to complete – which could have otherwise been avoided. This article describes an essential feature of their private business sales process in order to avoid such mistakes.
Don’t make the non-disclosure agreement (NDA) mistake
The M&A process can be long and complex. Selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal processes involved in negotiations. Businesses must be careful not to disclose sensitive company information without first having a comprehensive M&A-related NDA. The agreement should protect the selling company’s proprietary information and operational secrets.
How important is a comprehensive online data room?
Given that time is the enemy of deals, a pre-established online data room that is properly filled will substantially expedite the buyer’s significant due diligence activities and enable the seller to more swiftly compose their disclosure schedule.
Financial Due Diligence
Examine the annual and quarterly financial statements for at least the past three years and determine the information as explored in this article. Given these metrics, you should be able to determine answers for key due diligence questions.
Attributes of the Online Data Room
The selling company must establish a well-organised online data room in order to assist potential buyers with their substantial due diligence activities. At latest, it should be ready immediately after parties finalise indicative offers/letter of intent. An effective data room should have all the elements described in this article.
Due Diligence for Customers and Sales
In order to understand the business’s customer base, interested parties should at minimum understand the information which is collected from the 4 key areas as outlined in this article.
M&A: Tech & IP related due diligence
Companies that have not been involved in previous M&A transactions commonly make mistakes that result in mispricing, unfavourable terms or a failure to complete – which could have otherwise been avoided. This article describes essential technology and intellectual property related due diligence measures a buyer should undertake.
3 Key Issues Regarding Escrows
An escrow is a common risk-mitigation tool which is becoming used in a majority of M&A deals. This article discusses 2 key questions involved with holdback escrows.
Guarding against fraud claims
One of the most dangerous allegations a dissatisfied buyer could make against the seller is one of fraud (which, for example, could have resulted in overpayment). This may relate to the representations and warranties held in the acquisition agreement, or about ‘false or misleading’ information provided during due diligence sessions or in the online data room.
Is Price the Same as Value?
Those who have looked at buying a business before may have found that their accountant’s valuations are well below the asking price. The asking price can often exceed its fair value for the reasons discussed in this article.
Preparing for Sale
During the sales process, sellers often realise that if they had changed a few aspects of their business then they could have achieved a significantly better outcome such as a higher price and better after-tax outcomes. Therefore, it is best to prepare the business for sale well in advance.
The Age – Is Grand Old Lady of Retail Myer to go to Highest Bidder?
The inimitable value which an experienced M&A advisor can bring in order to achieve a highly successful deal is explored in this article. Companies that have not been involved in previous M&A transactions commonly make avoidable mistakes that can result in under-pricing, unfavourable terms or a failure to complete.
The Australian – No Let-Up in M&A Activity
The inimitable value which an experienced M&A advisor can bring in order to achieve a highly successful deal is explored in this article. Companies that have not been involved in previous M&A transactions commonly make avoidable mistakes that can result in under-pricing, unfavourable terms or a failure to complete.
Preparing for sale
We are looking to sell our business at some stage over the next five years. Should we be getting the business ready for sale? Yes. During the sales process, sellers often realise that if they had changed a few aspects of their business then they could have achieved a significantly better outcome such as a higher price and better after-tax outcomes. Therefore, […]
Is price the same as value?
Those who have looked at buying a business before may have found that their accountant’s valuations are well below the asking price. The asking price can often exceed its fair value for the following reasons: Price and value are not the same thing. A valuer typically values a business on the basis of a willing buyer and a willing seller. Since perfect […]
Guarding against fraud claims
The M&A process can be long and complex. Buying or selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal dynamics involved in negotiations. Companies that have not been involved in previous M&A transactions commonly make mistakes that result in mispricing, unfavourable terms or a failure to complete – which could have […]
3 Key Issues Regarding Escrows
The M&A process can be long and complex. Buying or selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal dynamics involved in negotiations. Companies that have not been involved in previous M&A transactions commonly make mistakes that result in mispricing, unfavourable terms or a failure to complete – which could have otherwise […]
M&A: Tech & IP related due diligence
The M&A process can be long and complex. Buying or selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal dynamics involved in negotiations. Companies that have not been involved in previous M&A transactions commonly make mistakes that result in mispricing, unfavourable terms or a failure to complete – which could have […]
Due Diligence for ‘Customers and Sales’
The M&A process can be long and complex. Buying or selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal dynamics involved in negotiations. Companies that have not been involved in previous M&A transactions commonly make mistakes that result in mispricing, unfavourable terms or a failure to complete – which could have […]
Attributes of the Online Data Room
The M&A process can be long and complex. Buying or selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal dynamics involved in negotiations. Companies that have not been involved in previous M&A transactions commonly make mistakes that result in mispricing, unfavourable terms or a failure to complete – which could have […]
Financial Due Diligence
The M&A process can be long and complex. Buying or selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal dynamics involved in negotiations. Companies that have not been involved in previous M&A transactions commonly make mistakes that result in mispricing, unfavourable terms or a failure to complete – which could have […]
How important is a comprehensive online data room?
Given that time is the enemy of deals, a pre-established online data room that is properly filled will substantially expedite the buyer’s significant due diligence activities and enable the seller to more swiftly compose their disclosure schedule.
Don’t make the non-disclosure agreement (NDA) mistake.
The M&A process can be long and complex. Selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal processes involved in negotiations. Businesses must be careful not to disclose sensitive company information without first having a comprehensive M&A-related NDA. The agreement should protect the selling company’s proprietary information and operational secrets.
A key element of every M&A transaction.
Companies that have not been involved in previous M&A transactions commonly make mistakes that result in under-pricing, unfavourable terms or a failure to complete – which could have otherwise been avoided. This article describes an essential feature of their private business sales process in order to avoid such mistakes.
Not Neglecting the Day to Day
The M&A process can be long and complex. Selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal processes involved in negotiations. Companies that have not been involved in previous M&A transactions commonly make mistakes that result in under-pricing, unfavourable terms or a failure to complete – which could have otherwise been […]
Hire a trustworthy investment bank experienced in M&A
The inimitable value which an experienced M&A advisor can bring in order to achieve a highly successful deal is explored in this article. Companies that have not been involved in previous M&A transactions commonly make avoidable mistakes that can result in under-pricing, unfavourable terms or a failure to complete.
The Age – Is Grand Old Lady of Retail Myer to go to Highest Bidder?
Australia’s grand old lady of retail – the Myer department store – is being prettied up for a possible appearance on the catwalk with an eye to being sold to the highest bidder. The future of the 105-year-old shopping icon is now under review by its owner, Australia’s largest retailer Coles Myer …
The Australian – No Let-Up in M&A Activity
MELBOURNE, Jan 21 AAP – There has been no let-up in merger and acquisition (M&A) activity in the new year following a boom 2004 when Australia led the Asia-Pacific region in a takeover frenzy. Proposed alliances, some friendly and some hostile, continue unabated with billions of dollars changing hands as companies feed the …