Mergers, Acquisitions, and Other Restructuring Activities, 10th Edition

Introduction

Discussions during the early phases of the negotiating process often are nuanced. Any reference to purchase price by the potential acquirer is usually verbal, vague, and expressed in a range or formula (e.g., multiple of earnings). Sellers routinely move aggressively to get the buyer to state as high an offer price with as few caveats as possible before granting the buyer the right to examine detailed financial statements, operations, etc. Buyers use the lack of access to proprietary data as a reason for being vague and noncommittal about price. Thus, the process of getting agreement on price often is elusive, laborious, and sometimes highly contentious.

Part IV describes various aspects of the negotiating process and how deal ...