1.

Walk Me Through The Most Important Terms Of A Purchase Agreement In An M&a Deal?

Answer»

There are dozens, but here are the most important ones:

  1. Purchase Price: Stated as a per-share amount for PUBLIC companies.
  2. Form of Consideration: Cash, Stock, Debt…
  3. Transaction Structure: Stock, Asset, or 338(h)(10)
  4. Treatment of OPTIONS: Assumed by the buyer? Cashed out? Ignored?
  5. Employee Retention: Do employees have to sign non-solicit or non-compete AGREEMENTS? What about management?
  6. Reps & Warranties: What must the buyer and seller claim is true about their respective businesses?
  7. No-SHOP / Go-Shop: Can the seller “shop” this offer around and TRY to get a better deal or must it stay exclusive to this buyer?

There are dozens, but here are the most important ones:



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