"M & A" Posts
Whose Ox Gets Gored
Jan 25, 2012
A brief look at choices in the M&A process
Understand the basic motivations parties bring to the transaction.
The first step in proper deal planning and structuring is to understand the basic motivations parties bring to a particular transaction. From the sell side, the primary goal is to maximize the after tax proceeds (or as my colleague would say, “money in fist”). To meet this goal, a transaction needs to be structured so that its proceeds are subject to taxation at the lowest rate possible. On the other hand, buyers are looking for ways to maximize their return on investment. …