Due Diligence is Key in Mergers and Acquisitions
Updated: Jun 2, 2021
by Stewart A. Merkin Esq.
Miami, Florida 33137
Structuring and negotiating an acquisition is always a challenge. Working with a corporate lawyer with experience in your industry who has completed similar transactions is crucial to ensuring a positive outcome. Stewart A. Merkin has the experience and the expertise to help you navigate the many considerations that business mergers or acquisitions demand:
— Deal structure: This must be decided early in any potential merger or acquisition transaction. Plainly stated, you must decide how much of the company you are interested in purchasing and how you want to effect that purchase.
— Payment: The total topline amount to be paid is not the only payment issue that arises in M&A -- seller and buyer must also agree on the form of consideration.
— People: Human capital is an important part of what makes many companies successful. Before you consider purchasing a company, you must consider the employees of the company and the extent to which they are assets you need to acquire in order to realize the value of your investment.
There are many ways to determine the fair market value of a business, which can make agreeing on a fair valuation challenging. You must look at not just the absolute book value, but also capitalization of earnings, forecasted earnings and many other factors. Usually, getting a third party, such as a professional appraiser or an attorney to do an assessment makes negotiating a fair valuation much simpler.
Stewart A. Merkin is an AV peer review rated lawyer by Martindale-Hubbell who has been practicing law in Miami, Florida since 1974. The practice specializes in corporate and business law, real estate, representing startups, mergers and acquisitions, international transactions and nonprofit corporations. For more information on our services, give us a call today.