A joint venture (JV) is a business arrangement in which two or more organizations agree to unite their resources for the purpose of carrying out a specific task. Tasks might include the research and development of new products, selling into a new market, or other operational pursuits. It’s important to note that a JV…
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When performing their due diligence, buyers in an M&A or private equity transaction must perform a valuation of the entire assets of the target company. Often, this means employing one or more business appraisal techniques. The most common methods that analysts use to evaluate assets include discounted cash flow analysis, comparable company analysis and precedent…
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Firms undergoing a merger or acquisition or seeking capital from private investors should be ready for an operational due diligence (ODD) review. Most commonly used in financial firms, particularly by hedge funds and other investment firms, and in industrial M&A deals, an ODD can also benefit retail organizations and any business. There are many…
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by David Weedmark Due diligence is the process of verifying, investigating or auditing a potential investment opportunity to confirm that the investor or buyer has all of the relevant information needed. This is done before the deal closes and, if it’s not done right, may terminate the deal. The Role of Due Diligence in…
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Intercompany transactions often carry unique legal and financial challenges for the parent company and its subsidiaries that may benefit from the cash or assets exchanged. Even if both companies do everything “by the books,” with a clear record of transactions, lenders may not look favorably upon intercompany transactions. These types of transactions can also muddy…
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When engaged in a complex transaction, such as a merger or acquisition, or when engaged in private equity funding, it’s reasonable to expect that an audit of the target company’s financial statements will take place. The acquiring company or group of investors certainly want the reassurance that the company’s assets and liabilities are properly organized…
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Watermarks are an important security measure to mark a document without obscuring its contents. The use of watermarks dates back to the 13th century, when paper was pressed with a metal stamp while it was still wet, leaving a permanent mark on the paper. Regardless of what was printed on the document, holding the paper…
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Sharing important documents is an act of trust that can have catastrophic consequences for you and your business if it’s not done properly. An unsecured document, or a document shared with the wrong person, can expose you to risks that may not become evident for years after the original transaction has been completed. But…
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If necessity is the mother of invention, there’s probably a software solution that’s already been invented to handle that necessity. Indeed, people often look to technology to handle life’s little confusions. Whether it’s a consumer wondering how to resize a photo or a business person trying to figure out how to convert a Word…
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The success of a merger and acquisition (M&A) deal isn’t guaranteed after the deal is signed and sealed. The integration period is every bit as crucial to ensuring that the acquiring business is able to achieve the goals it intended to with the transaction. How to ensure this phase of your M&A goes smoothly?…
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