While mergers and acquisitions (M&A) may be a buzzword for corporate companies but they can have a an impact on a company's growth strategy, survival, and the success. M&As are often pursued for strategic or financial reasons, and can take many forms. For instance, a company might want to expand into new markets, gain expertise and intellectual property, or even enter the field of healthcare. In certain instances the company might need to replace the retiring you can look here Baby Boomers by more experienced and skilled employees.
Most private M&A transactions are structured as an acquisition of shares, not assets. The principal agreement governing such deals is typically referred to as a Stock Purchase Agreement, Securities Purchase Agreement or SPA. This article focuses on some of the most important features of these agreements.
A solid understanding of M&As is essential for any business leader who wishes to expand their company through acquisitions. Explore the courses in our Leading with Finance portfolio to create your own tools to make more informed financial decisions. The sooner you consider the financial implications of M&A the better prepared you'll be to avoid common mistakes. M&As can be complex and time-consuming to execute. A well-planned M&A however, could create a huge value for your company with the proper plan.