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Earnout structures: Bridging valuation gaps in M&A – beware the tax complexity

JD Supra: Mergers

In brief Our recent Private M&A Report highlights a rise in the use of earnout and contingent consideration structures in private M&A transactions as parties seek to bridge valuation gaps. There are a number of tax pitfalls that can arise for the unwary when using earnout structures. By: Herbert Smith Freehills Kramer

M&A
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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Due diligence and valuation are critical to any successful merger and acquisition (M&A) deal. Valuation: Determining the Fair Valu e Valuation is the process of determining a company’s fair market value. Accurate valuation is essential for successful M&A deals.

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Can You Supercharge Your Business Growth? The Roll-Up Strategy REVEALED

How2Exit

His career transitioned into investment banking and fractional CFO services, where he developed significant expertise in mergers and acquisitions, particularly roll-ups. Integrating talent and aligning interests across multiple acquisitions magnifies operational efficiencies, improving prospectives for valuation bumps.

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The Unseen Hand: Tariffs and Their Profound Consequences on Mergers & Acquisitions

MergersCorp M&A International

Far from being mere taxes on goods, these duties exert a profound and multifaceted influence on the landscape of Mergers & Acquisitions (M&A). Valuation models, which are typically built on projections of future earnings and cash flows, must be meticulously re-evaluated to account for these increased costs.

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Navigating Earn-Out Disputes: Key Considerations for Private Funds

JD Supra: Mergers

Times of economic volatility often increase disparities between a seller’s valuation and the buyer’s valuation of the same company. Earn-out provisions are one tool frequently used to address such disparities.

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SPACs: A Path to Public Markets That Shouldn’t Be Overlooked

MergersCorp M&A International

A definitive agreement is signed, outlining the terms of the merger, the valuation of the target company, and the ownership structure of the combined entity. Shareholder Vote and Redemptions: Before the merger can be finalized, the SPAC’s public shareholders vote on the proposed business combination.

IPO
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Malta: A Global Leader in Corporate Structure

MergersCorp M&A International

Moreover, the growing interest in mergers and acquisitions within the gaming sector means that business owners in Malta can capitalize on their companies value. With the rise of online gaming and esports, investors are increasingly seeking to acquire businesses that can leverage Malta’s advantages.