Business attorney Clem Abrams returns this week with Mergers & Acquisitions (M&A) part 1 of 4. This week, he introduces mergers and acquisitions. As a business lawyer with over 20 years’ experience, Mr. Abrams regularly advises Davis Law clients on transaction matters, including complex M&A, asset and stock purchases, restructuring, and corporate compliance issues.
Transcription: Hey folks! Clem Abram’s from Davis Law, PLC. We’re going to talk about mergers and acquisitions and how it can help perpetuate your business on a long-term basis. We’re also going to discuss how mergers and acquisitions can improve your business’s life cycle by drawing in your best resources to benefit the marketplace and the stakeholders that you’re committed to. There are three deal structures that have the potential of creating exponential momentum in your business’s life cycle. Number one is the sale of business assets. What this means is, that part or portions of a business such as a division or product are sold rather than the entire company. Number two is mergers, now there are several types of mergers such as the horizontal merger, the vertical merger, and the merger of equals. Over the course of our weekly videos we will unwrap each of these types. The third is a stock or equity sale. In this instance instead of buying assets or liabilities, the buyers focused on purchasing the controlling interest in the entire business through the acquisition of shares. In each of these structured deals a, synergistic effect can determine where resources are positioned to be placed in their most productive state. Next we’ll discuss understanding the typical merger and acquisition lifecycle. Thank you for tuning in.