Mergers Acquisitions Blog
M&As might sound like buzzwords in the corporate world however they can have a major impact on a business’s growth strategy as well as its survival and success. M&As are pursued for financial or strategic reasons, and can take many forms. For instance, a company may want to expand into new markets, gain expertise and intellectual property, or enter the health care industry. In certain instances businesses may have to replace retiring Baby Boomers with more skilled and experienced employees.
The majority of private M&A transactions are framed as an acquisition of shares, not assets. The principal agreement governing such transactions is usually referred to as a Stock Purchase Agreement, Securities Purchase Agreement or SPA. This article focuses on the key features of these kinds of agreements.
Any leader who wants to expand their business via acquisitions must have a strong grasp of M&As. Explore our Leading with Finance Portfolio to build your arsenal and make better financial decisions. The sooner you consider the financial consequences of M&A the better prepared you’ll be to avoid common mistakes. M&As are often complex and time-consuming, making them difficult to implement. A well-executed M&A, however, can create a huge value for your business if you do the right plan.