As a follow-up to his November 26, 2010 installment of The Smith Report (entitled Buying a Company – Great time to deploy Earn-Outs), Ian asked me to take a deeper dive into the legal documentation of earn-out provisions in the M&A context. The earn-out is, as Ian...
When Genzyme announced recently it was exploring a new deal structure to help resolve the impasse on price with bidder Sanofi-Aventis, it highlighted a great tool in the M&A world, the earn-out deal. They called the structure a CRV or Contingent Value Right, an...
Research consistently shows that around 50% to 85% of acquisitions are a failure in the eyes of the acquirer and one of the most common reasons is a lack of post-acquisition planning. Buying another company and truly integrating it into your business is an operational...
On September 14th Megan Murphy wrote in the FT about the delicate art of post-merger integration, highlighting the speedy moves by Nomura to integrate the European and Asian assets of Lehman Brothers. Scary! Now whether you are acquiring a Billion dollar business or a...
This is the second paper in a series offering some advice on a better acquisition process. The Acquisition Approvals Process is a six phase process covering: strategy, identifying targets, target contact and assessment of value, negotiation, legal completion and post...
Remember that an acquisition is just one technique to execute your strategy. Acquisitions fail the same way many strategies fail – execution. Research shows us that reasons for failure include: lack of post acquisition planning, attitude of the seller’s management,...