Mergers and Acquisitions Buy side
M&A buyers are still looking in the midst of uncertainty. However, buyers will be mindful of added risks caused by COVID-19. These are some talent-related questions that may come up in future due diligence: • Did layoffs or other cuts impact the business’s ability to retain key employees? • Did… Read More »COVID-19 Era Due Diligence Part 1
When selling a business, an earnout or foregivable promissory note is a Buyer’s commitment to pay the Seller a certain amount of money tied to future performance after a sale. It bridges a valuation gap between what the Seller wants out of the business or future contracts are expected but… Read More »WIN-WIN: Earnouts / Forgiveable Promissory Notes
An exclusivity clause is an important part of M&A transactions. Also known as a ‘no shop’ provision, it prohibits the seller from sharing information or negotiating with other would-be buyers for a specified timeframe. Prior to this, the seller is negotiating with several buyers. The goal is to entertain multiple… Read More »Exclusivity Clause Protects Buyer Investment in M&A
STARTUP COSTS ARE HIGH Starting up a business usually entails a large outlay of cash for expenses several months before a single dollar is ever earned. Some common expenses include: location, tenant improvements (TIs), furniture, fixtures, and equipment (FFE), marketing, advertising, product development, employees, office manuals, creating systems and processes,… Read More »4 Reasons to Buy — Not Start — a Business