Mergers Acquisitions Blog
M&As may be viewed as buzzwords in the corporate world, but they can have a major impact www.thevirtualdatarooms.org/how-virtualization-has-evolved-and-what-it-means-for-your-business/ on a business’s growth strategy as well as its survival and success. M&As can be pursued for strategic or financial reasons and come in a variety of forms. For example, a business may wish to expand into new markets, acquire expertise and intellectual property, or even enter the health care industry. In other cases the company may face the need to replace the retiring Baby Boomers with more skilled and experienced team members.
The majority of private M&A transactions are framed as an acquisition of shares, not assets. The primary agreement that governs these transactions is usually referred to as a Stock Purchase Agreement, Securities Purchase Agreement or SPA. This article reviews some of the most important elements of these agreements.
A solid understanding of M&As is crucial for any business leader who wishes to expand their business via acquisitions. Explore the courses in our Leading with Finance portfolio to build your own toolkit to make more informed financial decisions. The sooner you consider the financial consequences of M&A the better prepared you will be to avoid common mistakes. M&As are time-consuming, complex and can be difficult to implement. A well-planned M&A however, could bring tremendous value to your business if you do the right plan.
