When a business needs money to maintain operations and expand their business, they often need outside sources of capital. But where do they get this capital from, and what is the right way to raise capital? First off, let’s start with the two ways of raising capital: debt or equity. One is borrowing the money…
By now, whether you believe in man-made climate change or not, the world is making major shifts from fossil fuels to renewable energy, and customers are making purchase decision (and even some governments are making investment decisions) on whether or not a certain company is being energy efficient. It’s estimated that by 2025 the renewable…
There are times when a merger seems like the ideal thing to do: you’ve launched a company, you’ve hit great heights, but you’re a crossroads where you’re not sure how exactly to expand–you’ve never been this big before, and you just don’t have the expertise and infrastructure to expand bigger than where you are. Or…
When it comes to mergers and acquisitions, as well as many other financial transactions between two companies, the days of brick-and-mortar data rooms are over. What once was a necessity for the secure reviewing of sensitive documents is now an archaic thing of the past that has been eclipsed by the overwhelming power of technology.…
Market Capitalization & Enterprise Value: What’s the Difference? When valuing a company, it’s important to be able to put a number on that valuation with which you can compare it to other companies, to thus make a quick comparison between their relative value. Two ways to measure the market value of a company are market…
What is the Role of an M&A Lawyer? What is an M&A? A merger and acquisition (M&A) is a broad term used to describe the consolidation, amalgamation, and purchasing of one company by another. This can happen through many different mechanisms, such as mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions. …
Amalgamation 101: The Ins and Outs In the simplest terms, an amalgamation in business is the combination of two companies into one larger single company. In this sense, it has much in common with mergers and acquisitions, though the terms are not necessarily interchangeable in all cases. The basic differences are these: Acquisition: …
Forward Mergers vs. Reverse Triangular Mergers Long before the advent of virtual data rooms, mergers and acquisitions were happening every day. It’s only been in the last few years that these forward mergers and reverse triangular mergers can take place with all the technological sophistication of a virtual data room, allowing for all the…
Why There has been a Startup Acquisition Boom Companies have always acquired other companies. Whether the purpose is to eliminate a competitor, strengthen a position in a market, bolster two companies’ core competencies, or give a boost to stock price, there has long been a history of mergers and acquisitions. But it seems that…
