M&A Tag

Introduction Private Equity invests in already existing private companies not listed in the stock exchange that are either promising companies in need of growth and expansion or those in need of ‘repair’. This is done by having a pool of investors investing in a fund; contributes to the fund and buy out the company whereby some changes are made such as change in strategy in reliance on the...

The primary models of corporate entity acquisition are usually through share or asset acquisition. Various factors influence the decision to settle on either of the two. In this write-up, the focus is on acquisition through shares, as discussed below. 1. Completion Accounts In this model, the parties initially agree on an estimated sale price and upon completion, the “completion...

Mergers and acquisitions (M&A) are processes that lead to the birth of new entities through the combination of two business entities into one, which is more effective and efficient than the two former companies that were independent. In these transactions, financial benefits are accrued to the owners of the original companies. M&A is a vital element of corporate expansion strategies,...