M&A Issues: Price

Posted on by Fred Wilson & Jason Li

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This is my final MBA Mondays post on M&A Issues. I’ve been posting about M&A since last December. It feels like a semester long effort. And frankly I’m a bit tired of talking about M&A every monday. But selling your company is an important topic and I think we’ve done it justice now on MBA Mondays.…

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M&A Issues: Consideration

Posted on by Fred Wilson & Jason Li

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We are getting to the end of the series on M&A. Two more M&A Issues to talk about and then I am done. The final two are consideration and price. Today I’ll talk about consideration and next week I’ll talk about price.

Consideration is the way in which you and your shareholders will get paid. The most…

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M&A Issues: Timing

Posted on by Fred Wilson & Jason Li

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Yet another post in the M&A Issues series. This one is about timing, ie how long it should take from the first serious conversation about a sale transaction until the closing.

I’ve seen acquisitions done in a week. I’ve seen acquisitions take over a year from the first serious conversation to close. And one thing I know…

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M&A Issues: Breakup Fees

Posted on by Fred Wilson & Jason Li

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Continuing our discussion of M&A Issues, we are going to talk about breakup fees today.

A breakup fee is a payment made by the buyer to the seller if the M&A transaction doesn’t close.

Many M&A transactions do not include breakup fees, particularly smaller transactions. But as the value of the transaction rises and the…

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M&A Issues: Governmental Approvals

Posted on by Fred Wilson & Jason Li

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Continuing our discussion of M&A Issues, this week we’ll talk about governmental approvals. When two companies combine, the government can sometimes get involved. It mostly happens when two large businesses combine and the most common reason for governmental review is antitrust considerations. It is also possible that foriegn governments can take interest in a business combination.

The…

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M&A Issues: The Stay Package

Posted on by Fred Wilson & Jason Li

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We continue our discussion of M&A Issues this week on MBA Mondays. Today we are going to talk about the “stay package.”

When a company acquires your business, they are buying the people as much as anything. Experience has shown that the most successful acquisitions require the team to stick around, at least for a while. But…

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