Unit 13 Preview and Introduction
Preview
This unit will cover the following topics:
- Timing and Funding the Acquisition
- The Letter of Intent
- Due Diligence
- The Deal’s Structure
- Joint Ventures
- Closing
Introduction
During the life of a business, it may become time to expand—to stay fresh, to expand a customer base, to expand the employee base, enter a new market, reduce competition, or perhaps to increase assets so that a loan or investor is easier to attract. Even though there may be legitimate reasons to expand, it can be costly, both economically and from a control standpoint.
This unit will not make you an expert in mergers & acquisitions. Each deal is nuanced but we will cover certain laws and concepts that occur with prevalence when one acquires another business entirely or its assets.