July 25, 2020

M&A Life Cycle Video Series with Clem Abrams

By: Clement Abrams

Business attorney Clem Abrams returns this week with Mergers & Acquisitions (M&A) part 2 of 4. This week, he discusses the Life Cycle of 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.

Transcript:

I’m Clem Abrams from Davis Law, PLC. Today we’re going to dive into the typical merger and acquisition lifecycle. The life cycle begins with strategy. Strategy is a step that helps to identify values that will create M&A opportunities for buyers in the sale of assets. Asset acquisitions carry much less risk since liabilities and contingent expenses stay with the selling company. For sellers, it’s an easy way to eliminate unprofitable business operations while retaining profitable ones. Screening is the next step in the lifecycle. This entails identifying promising M&A targets to acquire or sell. This is where parties leverage synergies to create even more value. The third step is the actual transaction which executes the M&A deal and this is for promotion of growth and increase in market presence. The post M&A integration is the final step in the life cycle of a merger and acquisition. This is where integration is useful for identifying issues and challenges and using this learned experience for future transactions. By focusing on life cycles those participating and M&A marketplace are better able to time entry points to achieve the main focus of mergers and acquisitions and that is, making sure resources are in their most productive state. Next week we’re going to dive into selling an equity interest in a corporation. Thank you for joining us and we’ll see you next week.