Boost M&A outcomes with less risk by learning from mistakes of the past
Material Adverse Change will help you close more successful mergers and acquisitions by analyzing the common root causes of deal failures from before the Great Recession to today. The time between signing and closing a deal is a particularly risky period where the buyer has committed to purchase the company, but the seller continues to operate it while waiting for regulatory approval or funding to close out the deal. A Material Adverse Change clause allows the buyer to back out of the transaction if certain adverse events occur during this period. By designing this safety net into the contract, you’re free to take the time to examine records, meet with employees, and fully understand the legal issues at hand. If the target loses value during that time, in certain cases, you’re free to walk away. This book explores the full power of the Material Adverse Change clause, and today’s M&A in general. You’ll dig into the real causes of M&A failure, and discover the traits and practices that lead to poor results as you learn how to avoid these common mistakes and drive more successful deals. Recent case studies highlight common mistakes made—and propagated—by otherwise intelligent people, so you can identify and eliminate these practices within your own organization.
A large acquisition is already a delicate balancing act. Why complicate it with the exponential risk by not doing your homework? This book shows you how to apply best practices to increase your chances of successful deals and avoid potentially career ending mistakes.
- Explore the true root causes of M&A failures of the past
- Analyze the personality traits that drive suboptimal outcomes
- Implement new practices to avoid mistakes and close successful deals
- Learn why common-sense errors are repeated over and over again
Table of contents
- Title Page
- Introduction: The Risks and Opportunities of Doing a Deal
- CHAPTER 1: Why Bad Deals Happen
- CHAPTER 2: Buy or Build?
- CHAPTER 3: Let the Buyer Beware
- CHAPTER 4: The Opportunities and Risks of Expanding Your Business Globally
- CHAPTER 5: Culture Is Critical
- CHAPTER 6: Who Is Behind the Curtain?
- CHAPTER 7: Is It Too Late to Back Out?
- CHAPTER 8: How to Negotiate a Better Deal
CHAPTER 9: Making It Right
- BE STRATEGIC
- MAINTAIN A RATIONAL ORGANIZATIONAL STRUCTURE
- STRUCTURE THE DEAL PROPERLY
- RECOGNIZE THE IMPORTANCE OF BRAND
- EFFICIENT DISTRIBUTION
- BEWARE OF CULTURE
- HAVE FINANCING LINED UP IN ADVANCE
- ESTABLISH AN APPROPRIATE M&A APPROVAL PROCESS
- INTEGRATE EARLY AND OFTEN
- CLEAR LEGAL AND REGULATORY PROCESS
- DON'T OVERPAY
- CONTINUOUS LEARNING
- A CASE STUDY: J.P. MORGAN BUYS BEAR STEARNS
- CHAPTER 10: Where Do We Go from Here?
- APPENDIX A: Trinity International/American Public Media Group
- APPENDIX B: Bank of America/Merrill
- About the Author
- End User License Agreement
- Title: Material Adverse Change
- Release date: April 2018
- Publisher(s): Wiley
- ISBN: 9781118066898
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