SlideShare a Scribd company logo
1 of 79
Download to read offline
BUSINESS ACQUISITIONS FIRST CLASS COURSE DESCRIPTION MOTIVATION FOR ACQUISITIONS MERGER & ACQUISITION BASICS © 2006 Joseph D. Lehrer
BUSINESS ACQUISITIONS An Interdisciplinary Approach Towards Teaching the Skills of a Business Lawyer
PREMISE OF THE COURSE The Role of the Transactional  Attorney is to Add  Value  to a  Business Transaction
ADDING VALUE TO A TRANSASCTION ,[object Object],[object Object],[object Object],[object Object]
BASIC ROLES OF THE ACQUISTION ATTORNEY ,[object Object],[object Object],[object Object],[object Object],[object Object]
COMMON RISKS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
THE COURSE WILL EMPHASIZE THE USE OF INTERDISCIPLINARY SKILLS Interdisciplinary Skills Include Legal, Financial and Business Skills
INTERDISCIPLINARY   LEGAL SKILLS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
EXTRA-LEGAL INTERDISCIPLIANRY BUSINESS SKILLS ,[object Object],[object Object],[object Object],[object Object],[object Object]
DOCUMENTATION OF THE TRANSACTION ,[object Object],[object Object],[object Object]
THE ACQUIRED SKILL TO APPLY MULTI- LEGAL AND EXTRA-LEGAL DISCIPLINES IN A SEAMLESS MANNER WITHIN A SINGLE TRANSACTION
CLIENTS EXPECT THE BUSINESS ATTORNEY ,[object Object],[object Object],[object Object],[object Object]
WHAT IS THIS COURSE ABOUT? (What is the Common Goal of the Buyer and Seller?)
$ $ $ $ MONEY
THE LANGUAGE OF MONEY ,[object Object],[object Object],[object Object],[object Object]
DETERMINING PRICE REQUIRES VALUATION ANALYSIS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CRTITICAL CONCEPUTAL ANALYSIS OF  “VALUE” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CRTITICAL CONCEPUTAL ANALYSIS OF  “VALUE” ,[object Object],[object Object],[object Object],[object Object]
NEW CONCEPTS AND TERMS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
STRUCTURING THE TRANSACTION ,[object Object],[object Object],[object Object],[object Object],[object Object]
PRELIMINARY NEGOTIATIONS AND INVESTIGATION ,[object Object],[object Object],[object Object]
IDENTIFICATION OF REGULARLY RECURRING ISSUES ,[object Object],[object Object],[object Object],[object Object],[object Object]
ISSUES RELATED TO DOCUMENTATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
FINANCING THE TRANSACTION ,[object Object],[object Object]
CORPORATE GOVERNANCE ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SPECIFIC ISSUES RELATED TO PUBLICLY HELD TARGETS ,[object Object],[object Object],[object Object],[object Object],[object Object]
ANTITRUST ISSUES ,[object Object],[object Object],[object Object]
COURSE PROCEDURES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
COURSE PROCEDURES ,[object Object],[object Object],[object Object],[object Object],[object Object]
COURSE PROCEDURES ,[object Object],[object Object],[object Object]
JOSEPH D. LEHRER [email_address] I can be reached at:
Merger & Acquisitions BASIC CONCEPTS
MERGER & ACQUISITION BASICS ,[object Object],[object Object],[object Object],[object Object]
MERGER WAIVES ,[object Object],[object Object],[object Object],[object Object]
MERGER WAIVES ,[object Object],[object Object],[object Object]
MERGER WAIVES ,[object Object],[object Object],[object Object],[object Object]
MERGER WAIVES ,[object Object],[object Object],[object Object]
MERGER WAIVES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
 
 
 
 
Top 10 Deals of 2005 Source:  Mergerstat
 
Source:  Bank of America Capital Business Capital
MOTIVATIONS OF BUYER AND SELLER What Causes The Urge to Merge?
TYPES OF BUYERS ,[object Object],[object Object],[object Object],[object Object]
SYNERGISTIC TRANSACTIONS ,[object Object],[object Object],[object Object]
MOTIVATIONS OF A BUYER ,[object Object],[object Object],[object Object],[object Object],[object Object]
MOTIVATIONS OF A BUYER ,[object Object],[object Object],[object Object],[object Object]
MOTIVATIONS OF A SELLER ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MOTIVATIONS OF A SELLER ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lipton’s Article Identifies Exogenous Factors and Autogenous Factors Affecting Mergers ,[object Object],[object Object]
WASSERSTEIN’S FIVE PISTONS FOR M&A ,[object Object],[object Object],[object Object],[object Object],[object Object]
DO MERGERS SUCCEED? Is The Economist right when saying (January 9, 1999  After the deal  ): "Study after study of past merger waves have shown that two of every three deals have not worked; the only winners are the shareholders of the acquired firm, who sell their company for more than it is really worth."
GRADING ACQUISITIONS ,[object Object],[object Object]
 
 
Returns to Investors in LBO’s Have Not Equaled the Risk of an LBO
CAUSES FOR BAD ACQUISTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MERGER & ACQUISITION BASICS ,[object Object],[object Object],[object Object],[object Object]
TYPES OF TARGETS ,[object Object],[object Object]
THREE BASIC ACQUISITION STRUCTURES ,[object Object],[object Object],[object Object]
STOCK PURCHASE ,[object Object],[object Object]
Think of a Corporation as a Box
In an Acquisition Structured as a Stock Purchase, the Acquirer Purchases the Entire Corporation (i.e., the entire box) including everything inside of the Box  (i.e., all assets and all liabilities)
 
But without Investigation, the Buyer may not Know what is Inside the Box
There could be an Unpleasant Surprise Inside the Box
BUYER SHAREHOLDERS STOCK TARGET Purchase Price Stock Purchase  Transaction
BUYER SHAREHOLDERS Cap Gains Tax STOCK TARGET Purchase Price As a result of  Stock Purchase
ASSET PURCHASE ,[object Object],[object Object],[object Object],[object Object],[object Object]
In an Asset Purchase the Buyer can Choose what Assets and Liabilities are Acquired
TARGET BUYER Assets Assumed Liabilities Purchase Price Shareholders Asset  Purchase
Statutory Stock Merger ,[object Object],[object Object],[object Object]
USING THE ANLAOGY OF THE BOX ,[object Object],[object Object],[object Object]
Target Target S-H’s Buyer Merger Buyer’s  Stock Buyer’s S-H’s Statutory Merger A Reorg.
Target S-H’s BUYER Target’s Assets & Liabilities Buyer’s  S-H’s As a result of the Merger

More Related Content

What's hot

PBSN Super Day Presentation
PBSN Super Day PresentationPBSN Super Day Presentation
PBSN Super Day Presentationpbsn
 
Mergers and Acquisitions Training
Mergers and Acquisitions TrainingMergers and Acquisitions Training
Mergers and Acquisitions TrainingTonex
 
reasons of corporate valuation
reasons of corporate valuationreasons of corporate valuation
reasons of corporate valuationiti55
 
Financial management ppt
Financial management pptFinancial management ppt
Financial management pptanandachu
 
Corporate Valuations: Techniques and Application
Corporate Valuations: Techniques and ApplicationCorporate Valuations: Techniques and Application
Corporate Valuations: Techniques and ApplicationCorporate Professionals
 
Basic Company Valuation
Basic Company ValuationBasic Company Valuation
Basic Company ValuationFaizanization
 
31st Oct Complete
31st Oct Complete31st Oct Complete
31st Oct Completeukabuka
 
Valuation of Banks
Valuation of BanksValuation of Banks
Valuation of BanksPankaj Baid
 
Unit 6 company valuation
Unit 6 company valuationUnit 6 company valuation
Unit 6 company valuationkmaou
 
2021 business planning copyright
2021 business planning copyright2021 business planning copyright
2021 business planning copyrightMiriam Robeson
 
Mozer Methods Of Valuation
Mozer Methods Of ValuationMozer Methods Of Valuation
Mozer Methods Of ValuationQRCE
 
The Capital Market and the Investment Decision
The Capital Market and the Investment DecisionThe Capital Market and the Investment Decision
The Capital Market and the Investment DecisionNoel Buensuceso
 
Qualities of a good capital structure
Qualities of a good capital structureQualities of a good capital structure
Qualities of a good capital structureAnand Saran
 
Capital structure -Nuances of Debt vs Equity
Capital structure -Nuances of Debt vs EquityCapital structure -Nuances of Debt vs Equity
Capital structure -Nuances of Debt vs EquityShyama Shankar
 

What's hot (20)

PBSN Super Day Presentation
PBSN Super Day PresentationPBSN Super Day Presentation
PBSN Super Day Presentation
 
Entrepreneurship Chap 5
Entrepreneurship Chap 5Entrepreneurship Chap 5
Entrepreneurship Chap 5
 
Mergers and Acquisitions Training
Mergers and Acquisitions TrainingMergers and Acquisitions Training
Mergers and Acquisitions Training
 
reasons of corporate valuation
reasons of corporate valuationreasons of corporate valuation
reasons of corporate valuation
 
Financial management ppt
Financial management pptFinancial management ppt
Financial management ppt
 
Registered Valuer in Companies Act 2013
Registered Valuer in Companies Act 2013Registered Valuer in Companies Act 2013
Registered Valuer in Companies Act 2013
 
Corporate Valuations: Techniques and Application
Corporate Valuations: Techniques and ApplicationCorporate Valuations: Techniques and Application
Corporate Valuations: Techniques and Application
 
Basic Company Valuation
Basic Company ValuationBasic Company Valuation
Basic Company Valuation
 
Capital structure-theories
Capital structure-theoriesCapital structure-theories
Capital structure-theories
 
31st Oct Complete
31st Oct Complete31st Oct Complete
31st Oct Complete
 
Valuation of Banks
Valuation of BanksValuation of Banks
Valuation of Banks
 
Unit 6 company valuation
Unit 6 company valuationUnit 6 company valuation
Unit 6 company valuation
 
2021 business planning copyright
2021 business planning copyright2021 business planning copyright
2021 business planning copyright
 
Financial management 2
Financial management 2Financial management 2
Financial management 2
 
Mozer Methods Of Valuation
Mozer Methods Of ValuationMozer Methods Of Valuation
Mozer Methods Of Valuation
 
Modigiliani miller
Modigiliani miller Modigiliani miller
Modigiliani miller
 
The Capital Market and the Investment Decision
The Capital Market and the Investment DecisionThe Capital Market and the Investment Decision
The Capital Market and the Investment Decision
 
Cost of capital
Cost of capitalCost of capital
Cost of capital
 
Qualities of a good capital structure
Qualities of a good capital structureQualities of a good capital structure
Qualities of a good capital structure
 
Capital structure -Nuances of Debt vs Equity
Capital structure -Nuances of Debt vs EquityCapital structure -Nuances of Debt vs Equity
Capital structure -Nuances of Debt vs Equity
 

Similar to Week 1 06

Outside cp knowledge presentation deepak kapoor jims_deal_conti...
Outside cp knowledge presentation               deepak kapoor jims_deal_conti...Outside cp knowledge presentation               deepak kapoor jims_deal_conti...
Outside cp knowledge presentation deepak kapoor jims_deal_conti...Pavan Kumar Vijay
 
HHMC - what is your Recruitment Business Worth?
HHMC - what is your Recruitment Business Worth?HHMC - what is your Recruitment Business Worth?
HHMC - what is your Recruitment Business Worth?HHMC Australia
 
HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A...
HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A...HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A...
HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A...Cheval Capital, Inc
 
Revisionon g business
Revisionon g businessRevisionon g business
Revisionon g businessErnest Chan
 
New Ventures BC Dialling for Dollars 20080528
New Ventures BC Dialling for Dollars 20080528New Ventures BC Dialling for Dollars 20080528
New Ventures BC Dialling for Dollars 20080528David Shore
 
Insourcing Outsourcing Panel
Insourcing Outsourcing PanelInsourcing Outsourcing Panel
Insourcing Outsourcing Panelguest0dabad
 
It’s Lonely at the Top:Exit Strategy Alternatives for Sole Owners and Partners
It’s Lonely at the Top:Exit Strategy Alternatives for Sole Owners and PartnersIt’s Lonely at the Top:Exit Strategy Alternatives for Sole Owners and Partners
It’s Lonely at the Top:Exit Strategy Alternatives for Sole Owners and PartnersZweigWhite
 
Mergers and Acquisitions: Preparing for Change
Mergers and Acquisitions: Preparing for Change Mergers and Acquisitions: Preparing for Change
Mergers and Acquisitions: Preparing for Change Bailey LeRoux
 
Private Sector Alliances
Private Sector AlliancesPrivate Sector Alliances
Private Sector AlliancesDr. Alex Hope
 
IT Outsourcing: Engaging with the Market to Leverage your Buying Power
IT Outsourcing: Engaging with the Market to Leverage your Buying PowerIT Outsourcing: Engaging with the Market to Leverage your Buying Power
IT Outsourcing: Engaging with the Market to Leverage your Buying PowerWalter Adamson
 
Mergers And Acquisitions
Mergers And AcquisitionsMergers And Acquisitions
Mergers And Acquisitionsvarunthecool
 
Non finance professionals ppt @ bec doms bagalkot
Non finance professionals ppt @ bec doms bagalkotNon finance professionals ppt @ bec doms bagalkot
Non finance professionals ppt @ bec doms bagalkotBabasab Patil
 
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRSCPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRSSarah Edson
 
Alliances and joint-ventures the way forward in Relation marketing in Zimbabwe
Alliances and joint-ventures the way forward in Relation marketing in ZimbabweAlliances and joint-ventures the way forward in Relation marketing in Zimbabwe
Alliances and joint-ventures the way forward in Relation marketing in ZimbabweBernard Tapiwa Sithole
 

Similar to Week 1 06 (20)

Outside cp knowledge presentation deepak kapoor jims_deal_conti...
Outside cp knowledge presentation               deepak kapoor jims_deal_conti...Outside cp knowledge presentation               deepak kapoor jims_deal_conti...
Outside cp knowledge presentation deepak kapoor jims_deal_conti...
 
HHMC - what is your Recruitment Business Worth?
HHMC - what is your Recruitment Business Worth?HHMC - what is your Recruitment Business Worth?
HHMC - what is your Recruitment Business Worth?
 
HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A...
HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A...HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A...
HostingCon 2011 - Why Your Business May Be Worth More (or Less) To You Than A...
 
Revisionon g business
Revisionon g businessRevisionon g business
Revisionon g business
 
New Ventures BC Dialling for Dollars 20080528
New Ventures BC Dialling for Dollars 20080528New Ventures BC Dialling for Dollars 20080528
New Ventures BC Dialling for Dollars 20080528
 
Real Estate Joint Venture Partnerships Basics
Real Estate Joint Venture Partnerships BasicsReal Estate Joint Venture Partnerships Basics
Real Estate Joint Venture Partnerships Basics
 
Insourcing Outsourcing Panel
Insourcing Outsourcing PanelInsourcing Outsourcing Panel
Insourcing Outsourcing Panel
 
It’s Lonely at the Top:Exit Strategy Alternatives for Sole Owners and Partners
It’s Lonely at the Top:Exit Strategy Alternatives for Sole Owners and PartnersIt’s Lonely at the Top:Exit Strategy Alternatives for Sole Owners and Partners
It’s Lonely at the Top:Exit Strategy Alternatives for Sole Owners and Partners
 
1 Nov
1 Nov1 Nov
1 Nov
 
Mergers and Acquisitions: Preparing for Change
Mergers and Acquisitions: Preparing for Change Mergers and Acquisitions: Preparing for Change
Mergers and Acquisitions: Preparing for Change
 
Private Sector Alliances
Private Sector AlliancesPrivate Sector Alliances
Private Sector Alliances
 
IT Outsourcing: Engaging with the Market to Leverage your Buying Power
IT Outsourcing: Engaging with the Market to Leverage your Buying PowerIT Outsourcing: Engaging with the Market to Leverage your Buying Power
IT Outsourcing: Engaging with the Market to Leverage your Buying Power
 
Mergers And Acquisitions
Mergers And AcquisitionsMergers And Acquisitions
Mergers And Acquisitions
 
Non finance professionals ppt @ bec doms bagalkot
Non finance professionals ppt @ bec doms bagalkotNon finance professionals ppt @ bec doms bagalkot
Non finance professionals ppt @ bec doms bagalkot
 
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRSCPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
 
Ucre cpres1
Ucre cpres1Ucre cpres1
Ucre cpres1
 
Accounting concepts
Accounting conceptsAccounting concepts
Accounting concepts
 
Alliances and joint-ventures the way forward in Relation marketing in Zimbabwe
Alliances and joint-ventures the way forward in Relation marketing in ZimbabweAlliances and joint-ventures the way forward in Relation marketing in Zimbabwe
Alliances and joint-ventures the way forward in Relation marketing in Zimbabwe
 
Financing venture
Financing  venture Financing  venture
Financing venture
 
VC 101
VC 101VC 101
VC 101
 

More from ajithsrc

Business Plan On Retail Mall
Business Plan On Retail MallBusiness Plan On Retail Mall
Business Plan On Retail Mallajithsrc
 
New Ethics 5
New Ethics 5New Ethics 5
New Ethics 5ajithsrc
 
New Ethics 4
New Ethics 4New Ethics 4
New Ethics 4ajithsrc
 
Valuation Of S Ecurities
Valuation Of S EcuritiesValuation Of S Ecurities
Valuation Of S Ecuritiesajithsrc
 
Ajith Resume
Ajith ResumeAjith Resume
Ajith Resumeajithsrc
 
Operations Research
Operations ResearchOperations Research
Operations Researchajithsrc
 
Evolution Of Operations Management
Evolution Of Operations ManagementEvolution Of Operations Management
Evolution Of Operations Managementajithsrc
 
Textile Industry
Textile IndustryTextile Industry
Textile Industryajithsrc
 
Syndicate 1 Tqm
Syndicate 1 TqmSyndicate 1 Tqm
Syndicate 1 Tqmajithsrc
 
Supply Chain Mgmt Jit
Supply Chain Mgmt JitSupply Chain Mgmt Jit
Supply Chain Mgmt Jitajithsrc
 
Stevenson9e Ch04
Stevenson9e Ch04Stevenson9e Ch04
Stevenson9e Ch04ajithsrc
 

More from ajithsrc (20)

Business Plan On Retail Mall
Business Plan On Retail MallBusiness Plan On Retail Mall
Business Plan On Retail Mall
 
Ethics
EthicsEthics
Ethics
 
Ethics
EthicsEthics
Ethics
 
Ethics
EthicsEthics
Ethics
 
New Ethics 5
New Ethics 5New Ethics 5
New Ethics 5
 
New Ethics 4
New Ethics 4New Ethics 4
New Ethics 4
 
Valuation Of S Ecurities
Valuation Of S EcuritiesValuation Of S Ecurities
Valuation Of S Ecurities
 
Transport
TransportTransport
Transport
 
Inflation
InflationInflation
Inflation
 
Auto
AutoAuto
Auto
 
Ajith Resume
Ajith ResumeAjith Resume
Ajith Resume
 
Ksrtc
KsrtcKsrtc
Ksrtc
 
Operations Research
Operations ResearchOperations Research
Operations Research
 
Evolution Of Operations Management
Evolution Of Operations ManagementEvolution Of Operations Management
Evolution Of Operations Management
 
Tqm Tool2
Tqm Tool2Tqm Tool2
Tqm Tool2
 
Tqm Tool1
Tqm Tool1Tqm Tool1
Tqm Tool1
 
Textile Industry
Textile IndustryTextile Industry
Textile Industry
 
Syndicate 1 Tqm
Syndicate 1 TqmSyndicate 1 Tqm
Syndicate 1 Tqm
 
Supply Chain Mgmt Jit
Supply Chain Mgmt JitSupply Chain Mgmt Jit
Supply Chain Mgmt Jit
 
Stevenson9e Ch04
Stevenson9e Ch04Stevenson9e Ch04
Stevenson9e Ch04
 

Week 1 06

  • 1. BUSINESS ACQUISITIONS FIRST CLASS COURSE DESCRIPTION MOTIVATION FOR ACQUISITIONS MERGER & ACQUISITION BASICS © 2006 Joseph D. Lehrer
  • 2. BUSINESS ACQUISITIONS An Interdisciplinary Approach Towards Teaching the Skills of a Business Lawyer
  • 3. PREMISE OF THE COURSE The Role of the Transactional Attorney is to Add Value to a Business Transaction
  • 4.
  • 5.
  • 6.
  • 7. THE COURSE WILL EMPHASIZE THE USE OF INTERDISCIPLINARY SKILLS Interdisciplinary Skills Include Legal, Financial and Business Skills
  • 8.
  • 9.
  • 10.
  • 11. THE ACQUIRED SKILL TO APPLY MULTI- LEGAL AND EXTRA-LEGAL DISCIPLINES IN A SEAMLESS MANNER WITHIN A SINGLE TRANSACTION
  • 12.
  • 13. WHAT IS THIS COURSE ABOUT? (What is the Common Goal of the Buyer and Seller?)
  • 14. $ $ $ $ MONEY
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31. JOSEPH D. LEHRER [email_address] I can be reached at:
  • 32. Merger & Acquisitions BASIC CONCEPTS
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.  
  • 40.  
  • 41.  
  • 42.  
  • 43.  
  • 44. Top 10 Deals of 2005 Source: Mergerstat
  • 45.  
  • 46. Source: Bank of America Capital Business Capital
  • 47. MOTIVATIONS OF BUYER AND SELLER What Causes The Urge to Merge?
  • 48.
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56. DO MERGERS SUCCEED? Is The Economist right when saying (January 9, 1999 After the deal ): "Study after study of past merger waves have shown that two of every three deals have not worked; the only winners are the shareholders of the acquired firm, who sell their company for more than it is really worth."
  • 57.
  • 58.  
  • 59.  
  • 60. Returns to Investors in LBO’s Have Not Equaled the Risk of an LBO
  • 61.
  • 62.
  • 63.
  • 64.
  • 65.
  • 66. Think of a Corporation as a Box
  • 67. In an Acquisition Structured as a Stock Purchase, the Acquirer Purchases the Entire Corporation (i.e., the entire box) including everything inside of the Box (i.e., all assets and all liabilities)
  • 68.  
  • 69. But without Investigation, the Buyer may not Know what is Inside the Box
  • 70. There could be an Unpleasant Surprise Inside the Box
  • 71. BUYER SHAREHOLDERS STOCK TARGET Purchase Price Stock Purchase Transaction
  • 72. BUYER SHAREHOLDERS Cap Gains Tax STOCK TARGET Purchase Price As a result of Stock Purchase
  • 73.
  • 74. In an Asset Purchase the Buyer can Choose what Assets and Liabilities are Acquired
  • 75. TARGET BUYER Assets Assumed Liabilities Purchase Price Shareholders Asset Purchase
  • 76.
  • 77.
  • 78. Target Target S-H’s Buyer Merger Buyer’s Stock Buyer’s S-H’s Statutory Merger A Reorg.
  • 79. Target S-H’s BUYER Target’s Assets & Liabilities Buyer’s S-H’s As a result of the Merger