Working capital in the M&A context is the difference between a target company’s current assets and liabilities, excluding cash and debt.
Working capital in the M&A context is the difference between a target company’s current assets and liabilities, excluding cash and debt.
In the complex world of mergers and acquisitions (M&A), the role of an M&A attorney is crucial to the success of the transaction.
Deciding to hire an investment banker or a business broker is a significant step in the journey of any business owner. Whether you’re considering an acquisition or selling your company, these professionals can be instrumental in helping you navigate the complex M&A landscape.
When starting a business, ‘risk’ is not just a word, but a crucial part of the founder’s journey. Every decision has some risk, whether it’s entering a new market, seeking investor support, or introducing an innovative product.
Prospective buyers will closely scrutinize the financial health of a business, including profitability, cash flow, revenue trends, and growth potential. Ensuring financial records are accurate, up-to-date, and well-organized can significantly impact the perceived value of the business.
Spoiler alert – YES, you do! Tackling a complex new undertaking – such as the business sale process with its many moving pieces, new concepts, and special terminology – brings with it a learning curve.
Mergers and acquisitions (M&A) are complex transactions involving a wide array of financial, legal, and operational considerations. The M&A process requires a deep understanding of various business disciplines, with financial and legal advisors working in tandem with the goal of ensuring the deal proceeds smoothly.
As you explore the possible sale of your business, you’ll hear a lot of references to “representations and warranties” (casually referred to as “Reps” in M&A deal jargon). The process of negotiating, drafting, revising, and responding to Reps is a critical and time-consuming aspect of any M&A deal.
Planning to sell your company someday? Even if it’s two, three, five years down the road, developing the right exit frame of mind now will pay off handsomely in the future.
By focusing on incorporating a few additional skills you have tucked away in your toolbox, you’ll progress on your journey toward becoming a master M&A dealmaker. The reality is most M&A sellers have little to no experience with selling a company.
