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Purchase Agreement: The Four Key Sections Buyers Absolutely Need to Understand

Is your company in the process of buying another company?  If so, you’re going to need a carefully negotiated, well-drafted purchase agreement in place that describes the deal you’ve struck with the Seller. Depending on how your acquisition is structured, the document will likely take the form of an “asset purchase agreement,” “stock purchase agreement,” […]

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Earnouts (Part III): Key Negotiation Points

If you’re in the process of buying or selling a company, and you’ve decided or agreed to include an earnout in your deal, your next step is to determine the key terms of the earnout based on the outcome you’d like to achieve.  Being proactive about this (somewhat challenging) task will put you in position to negotiate the […]

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Earnouts (Part II): Good For Your Deal?

If you’re in the process of buying or selling a company, there’s a very good chance you’ll be faced with the decision of whether to include an earnout in your deal.  If you talk to people who have used earnouts in past deals, you just might come away with the conclusion that your “decision” should more […]

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Earnouts (Part I): What is an Earnout? And Why is it Useful?

This post is the first in a series on the subject of earnouts.  In the world of buying and selling companies, earnouts are often used, frequently discussed, often taken for granted, and commonly misunderstood.  But before going any further on those points, let’s be clear on the basics. 1.  What is an Earnout?  An earnout […]

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3 Secrets on How to Conduct Due Diligence Effectively Without Costing Yourself a Fortune

Is your company considering whether to buy another company?  If so, you probably know that conducting a “due diligence” review of the Seller’s business, and in particular the legal and financial aspects of that business, is critical. Due diligence allows you as the Buyer to assess whether to move forward with an acquisition and at […]

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Six Good Reasons Why You Should Have a Term Sheet in Your Next M&A Deal

Ever wonder whether it’s worth the cost and headache of negotiating a term sheet?   When negotiating the sale or purchase of a company, the question often comes up:  “So should we negotiate a Term Sheet, or just move directly to drafting and negotiating the principal deal documents?”  Seems like a simple enough question, but the […]

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