Archive for April, 2015
Structuring Earnouts in Technology Mergers & Acquisitions Deals
WHAT IS AN EARNOUT? In technology mergers or acquisitions, an earnout refers to a deal structure in which the buyer pays part of the purchase price of the tech company post-closing if the seller achieves certain goals. These goals may be financial or ...
How to Assess Synergies in a Mergers and Acquisitions Transaction
The reason for doing any merger or acquisition should be simple. Don't complicate the basic idea. You don't need a complex idea to justify your M&A transaction. Keep it simple. Many buyers try to over-complicate the strategy behind an M&A deal because ...
Advantages and Disadvantages of Asset Sale versus Stock Sale
Every business is unique. Therefore, every merger or acquisition transaction between any 2 or more businesses will inevitably be unique. There are a myriad of ways that any M&A deal can be structured. However, the ultimate objective is simple: To structure a ...
Advantages and Disadvantages of Reverse Mergers of Technology Companies
A reverse merger is a process in which a privately-held company can go public without the high expense and complexities of a traditional initial public offering (IPO). In a reverse merger, a private company merges with a publicly-listed company. The publicly-traded entity is sometimes a ...
Checklist for Performing Business Due Diligence of a Technology Business
This piece follows the article on the important legal due diligence process you must perform when you intend to acquire a technology company. You can read the preceding article here: Checklist for Performing Legal Due Diligence of a Technology Business. So you're looking to ...
Checklist for Performing Legal Due Diligence of a Technology Business
So you're looking to acquire a technology company. You've looked at dozens of prospects, identified a suitable candidate, and both the buyer and seller have executed a letter of intent. Now we get to the due diligence phase. This involves a thorough ...
History of Internet Mergers & Acquisitions: At Home Corporation acquired Excite Inc. for $6.7 billion in 1999
Let's take a walk down memory lane to see how far Internet mergers & acquisitions deals have come. We can learn a great deal from the past because history will repeat itself. I think the most effective way to explore this subject would be to ...
Revenue-Based Financing Solutions for Technology Companies
WHAT IS REVENUE-BASED FINANCING? Revenue-based financing (RBF), also known as royalty-based financing, is a unique form of financing provided by RBF investors to small- to mid-sized businesses in exchange for an agreed-upon percentage of a business' gross revenues. The capital provider receives ...
2 Rules You Must Follow When You Negotiate Website Purchase Offers by Email
Ideally, in business transactions, it is best to negotiate offers and counteroffers face-to-face or by phone. However, this is not always possible, especially in today's global environment where buyers and sellers are often not in the same city, and increasingly, ...
Should You Buy Video Streaming Websites?
What are video streaming websites? These are those popular websites you see on the Internet that allow people to watch their favourite movies and TV shows for free. Millions of people love watching videos on these websites and some of the ...
