Companies buy, sell, and merge with other companies for a variety of reasons: to grow; to remain competitive, get competitive, or become more competitive; to liquidate shareholders’ investments; to survive.
Some large public companies are serial acquirers and have experienced acquisition teams. Other businesses, such as privately-held RF/microwave companies and small makers of mobile software apps, are founded and run by engineers and software designers who have a taste for product performance or the latest social media trends, but who may have managed few, if any, company mergers.
This Mergers & Acquisitions Primer will seek to provide a roadmap for the M&A process and to outline some of the common issues that arise in deals involving private-held businesses.
Other posts in this series (more to come):
Mergers & Acquisitions Primer | Part 2: Overview of the acquisition process
Mergers & Acquisitions Primer | Part 3: Nondisclosure Agreement