In my first day in the M&A class, my teacher, Professor Rodrigo Olivares Caminal, asked the class a simple question – what is the difference between an acquisition and a takeover? More than 20 students attempted to answer this question without success. This is a simple but yet very fundamental question that goes to the […]
An M&A activity/transaction should be intentional. As obvious as this statement seems (simplistically, no one makes a buy or sell decision without ‘intending’ to do so), its importance to both sides of an M&A deal cannot be overemphasized. The Webster’s dictionary defines ‘intentional’ as an adjective that means something is ‘done purposely’. To be done […]
Imagine that you are a car enthusiast, and you take interest in reading about the German brand of cars – Mercedes, BMW and Volks Wagen. When you want to purchase your next car, your choice of which car to buy will very likely have been narrowed down to any 2 or 3 of the cars […]
Nature and Benefits of Letters of Intent A letter of intent (LOI) is a preliminary document usually prepared by a purchaser, in which the intention of the parties and the proposed course of action towards the negotiation and completion of a deal is captured and jointly executed. It may also be called a ‘Heads […]
Selling a business (asset or company) should not be difficult. All a seller is ordinarily required to do is to deliver the business in exchange for payment. But this is not really the case for a seller in a Merger & Acquisition (M&A) transaction. The M&A sale process is complex and time-consuming, thereby requiring careful […]