Term Sheet Guide
Term Sheet Overview A term sheet is a written document the parties exchange containing the important terms and conditions of the deal. The document summarizes the main points of the deal agreements and sorts out the differences before actually executing the legal agreements and starting off with the time-consuming due diligence. The term sheet is...
Trading Mechanisms
What are Trading Mechanisms? Trading mechanisms refer to the logistics behind trading assets and securities, regardless of the type of market. These markets can be exchanges, dealers, or OTC markets. The mechanisms are the operations by which buyers of an asset are matched with sellers. There are two main types of trading mechanisms: Order driven...
Multiples Analysis
What is Multiples Analysis? The multiples analysis is a valuation technique that utilizes different financial metrics from comparable companies to value a target company. Thus, the assumption is that the relative value of certain financial ratios can be used to rank or value a company within a similar group. Despite being the oldest technique in...
M&A Considerations and Implications
M&A – Top Considerations and Implications In M&A transactions, there are several important factors that executives, investment bankers, and other stakeholders must consider, including: Form of Consideration (Cash vs. Shares) Accounting Implications Tax Treatment Synergies Strategic Rationale Intangibles 1. Form of Consideration for the M&A Deal In order for a company to consider a merger...
Type A Reorganization
What is a Type A Reorganization? Type A reorganization is a “statutory merger or consolidation.” These are mergers or consolidations effected pursuant to state corporate law. A merger is a union of two or more corporations. One corporation retains its existence and absorbs the others. On the other hand, a consolidation occurs when a new corporation...
