FedEx, short for Federal Express, is a globally recognized courier delivery service that specializes in small package information, transportation, pickup, and delivery domestically or internationally between the US and Canada. Did you know that you can buy a FedEx route and benefit from each delivery that you make in your assigned territory? FedEx is one …
When buying a business, an asset purchase agreement (APA) is the contract under which a seller transfers some or all the company’s assets to a buyer. This legal document outlines the price, terms, conditions, and warranties of the deal. With an asset purchase agreement (also known as an “asset transfer agreement”), the company sells only …
In the context of a business acquisition, a letter of intent (LOI) is a document that defines the preliminary terms of the transaction and formalizes the intention of two parties to engage in it. Typically, the letter is created by the purchasing party, who proposes a price and outlines the structure of the negotiation. Although …
What is a no-shop clause? A non-shop clause, also known as an “exclusivity clause”, is a provision often included in business contracts, particularly in merger and acquisition (M&A) agreements and letters of intent. This clause is designed to restrict one party to the contract, typically the seller or the target company, from actively seeking or …
One of the most resorted strategies to fund a business acquisition is using seller financing. Through this method, buyers and sellers can agree to a purchase price more easily, since this type of financing offers more flexibility and better terms than other M&A funding alternatives. What is seller financing for business? Seller financing, or seller …
Seller financing: Complete guide for business buyers and sellers Read More »
What is due diligence in M&A? In Mergers and Acquisitions, due diligence is the process of doing in-depth research on the target business to verify the veracity of the provided information and the potential profitability of the business acquisition. The purpose of due diligence in M&A is to have all the relevant information about the …
An escrow holdback agreement is one of the methods a buyer can use to protect himself after a business transaction. In M&A, when making a business purchase, whether it’s an asset, stock sale, or merger, you always have the risk of encountering surprises after the deal is done. You can still do your due diligence …
What is a horizontal merger? In M&A, a horizontal merger occurs when two or more companies at the same level of the supply chain join together to form a new organization. In this process, also known as horizontal acquisition or horizontal integration, companies are usually part of the same industry. How do horizontal acquisitions …
Horizontal Mergers: What are they and how they work Read More »
Mergers and Acquisitions (M&A) is the process by which companies transfer their ownership or consolidate with other business organizations with a strategic purpose. Put simply, M&A refers to the activities concerning the sale and purchase of businesses. What is a merger? In a merger, two or more companies combine to create a new corporate entity, …
