The purchase agreement will spell out all the terms of the deal, including what assets are being purchased, the purchase price and terms, and provisions related to liabilities, restrictions, and recourse if things aren't as they seem.
- Purchase agreements spell out the terms of the deal,…including what assets are being purchased,…the purchase price and terms,…and provisions related to liabilities,…restrictions, and recourse if things aren't as they seem.…While plenty of attorneys will be involved…in this stage of the process,…you as the business leader need to understand…all the major elements of this agreement.…It's your name on the dotted line.…Read the entire agreement,…even the boring stuff.…
If you don't understand a term or a section,…ask for clarification.…The more deals you do,…the more familiar these agreements will become.…At one point I was in a strategic planning group.…I knew I would be doing a lot of deals.…The good news was, we used a standard agreement…for the majority of our deals.…The bad news was, this agreement was about 42 pages long.…I read every line of that agreement.…There were things I didn't understand.…
I sat down with our attorneys…and I made them explain it to me.…I was the one who was going to be signing that document.…
Author
Mike Figliuolo
Released
9/21/2018- Describe the forces in the Porter's Five Forces framework
- Identify the elements that go into making an acquisition case
- Contrast the benefits and costs of approaching a target directly or indirectly
- Explain why the Herfindahl-Hirschman index is important
- Explain how to conduct good valuation analysis
- Identify four methods of paying for an acquisition
- Discuss the reasons for including additional deal terms beyond price
- Describe the due diligence process and explain why it's important
- State the reasons why communication during integration is critical
Skill Level Beginner
Duration
Views
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Introduction
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Unlocking growth through M&A1m 13s
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1. Identify M&A Targets
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Identify targets2m 59s
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Make an investment case2m 25s
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2. Approach the Target
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Approach the target directly1m 47s
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3. Assess the Deal
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4. Negotiate the Deal
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Model the valuation2m 2s
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Define the deal structure1m 51s
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Negotiate the price1m 52s
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Use holdbacks and earnouts2m 44s
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Define other deal terms2m 2s
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5. Conduct Due Diligence
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Work with outside advisors1m 49s
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6. Consummate the Transaction
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Finance the deal1m 44s
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Sign purchase agreements2m 14s
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Communicate the deal1m 48s
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7. Integrate the Acquisition
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Plan the first 100 days1m 53s
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Build the integration team1m 48s
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Conclusion
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Avoid acquisition pitfalls1m 54s
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Video: Sign purchase agreements