A letter of intent (LOI) is one of the most commonly used tools for moving a deal forward. The LOI outlines the basic parameters for an acquisition including the period of exclusivity, purchase price and consideration, preferred deal structure, and expiration date. The LOI is your chance to communicate the strategic value of an acquisition …
Tag: legal M&A
Can a Minority Shareholder Block an Acquisition?
When you have multiple stockholders you typically have a stockholders’ agreement in place that all stockholders are required to sign. That will usually have what’s called a drag-along provision which states that if the majority of stockholders either approve a sale transaction, everyone else is required to go along with it. If you have a …
Narrow vs. Comprehensive Letter of Intent
The Letter of Intent (LOI) is an important milestone on the M&A process and is used to crystallize the most important terms of the deal. While the LOI is an important legal document, it also brings a new level of commitment and resolve to the deal. The LOI can be “narrow” or “comprehensive.” Narrow LOI …
New Trends in Mergers and Acquisitions Terms and Tactics
When it comes to M&A, dealmakers should be aware of several new trends in 2014. A recent webinar by The Deal, “Trends in M&A Deal Terms and Tactics,” focuses on two such trends from Delaware courts that may affect acquirers in all jurisdictions. Multi-Jurisdictional Litigation The first development is preventing multi-jurisdictional litigation. The webinar panel …
Bridging the Generation Gap
Do you work with your family? Navigating business politics and family dynamics can be tricky, especially when it comes to succession planning and determining the future of your business. Below are some key areas to focus on when it comes to selling or transferring ownership of a family-owned business to the next generation. Valuation Make …
