Mergers and Acquisitions : A Step-By-Step Legal and Practical Guide.
- 2nd ed.
- 1 online resource (335 pages)
- Wiley Finance Series .
- Wiley Finance Series .
Cover -- Title Page -- Copyright -- Contents -- Preface -- Acknowledgments -- Chapter 1: Structuring Fundamentals -- Basic Corporate Finance Concepts -- Valuation Theory -- Comparing Investments -- Element of Risk -- Risk and Portfolio Theory -- Portfolio Theory as Applied to Acquisitions -- Efficient Market Hypothesis -- Reasons for Acquisitions -- Three Basic Acquisition Structures -- Stock Purchase -- Merger -- Asset Purchase -- Structuring Considerations: Overview -- Tax -- Corporate Law -- Securities Laws -- Antitrust and Other Regulatory Considerations -- Acquisition Accounting -- Chapter 2: The Acquisition Process -- Overview -- Valuation of the Business -- Relative Valuation -- Discounted Cash Flow Analysis -- Investment Bank Engagement Letters -- Confidentiality Agreements -- Letters of Intent -- Stay Bonuses and Other Employee Retention Arrangements -- Business and Legal Due Diligence -- Intellectual Property Due Diligence -- Components of Intellectual Property: Overview -- IP Due Diligence -- From Signing to Closing -- Appendixes -- Chapter 3: Corporate (Nontax) Structuring Considerations -- Business Objectives and Other Nontax Structuring Considerations -- Residual Minority Interest -- Deferred Closings -- Need for Consents -- Misrepresentations and Indemnification -- Liability Avoidance -- Appraisal Rights -- Sale of Control at a Premium -- Substantially All Assets -- Acquisition Structure Diagrams -- Forms of Acquisition Consideration -- Debt -- Subordination Terms and the Analysis of the Risks of Holding Debt -- Other Aspects of Subordination -- Cash, Stock, and Earnouts -- Cash -- Stock -- Earnouts -- Successor Liability and the De Facto Merger Doctrine -- Securities Law Compliance -- Overview -- Private Placements -- Private Placements in the Acquisition Context -- Securities Laws from the Target's Perspective. Antitrust Compliance: Hart-Scott-Rodino Act -- Filing Requirement -- Other Possible HSR Transactions -- Waiting Period -- Filing Requirement Flowchart -- Gun Jumping: Impermissible Activities during the Waiting Period and before Closing -- Equity Compensation -- Accelerated Vesting on an Acquisition or IPO -- Tax Aspects of Stock Options and Restricted Stock -- Nonqualified Stock Options -- Incentive Stock Options -- Restricted Stock -- Employment Agreements and Noncompetition Covenants -- Examples of Cause Definitions -- Examples of Negotiating Points -- Indemnification -- Noncompetition Covenants -- Additional Considerations -- Employment and Benefits Law -- General Employment Issues -- Types of Benefit Plans -- Acquisition Accounting -- Recapitalization Accounting -- Cross-Border Acquisitions -- Appendixes -- Chapter 4: Tax Considerations -- Taxable Versus Tax-Free Transactions: Overview of Relevant Situations -- Detailed Analysis of the Positions of the Target and Its Owners and of the Buyer -- Nature of the Target's Business Organization -- Nature of Equity Owners -- Tax Position of the Buyer -- Taxable Transactions and Their Tax Effects -- Taxable Transactions Treated as Stock Purchases -- Transactions Treated as Asset Purchases -- Installment Sale Treatment and Contingent Purchase Prices -- Tax-Free Transactions -- Tax-Free Transactions Where the Target and the Buyer Are Both Corporations -- Tax Consequences to the Target Shareholders -- Treatment of Corporations Party to a Reorganization -- Special Situations -- Acquisitions from a Consolidated Group -- ESOP Transactions -- Dispositions of Unwanted Assets and Spin-Offs -- Acquisitive Transactions Where Either the Buyer or Seller Is Not a Corporation -- Management Tax-Free Rollovers in LBOs -- Golden Parachute Tax -- Background -- Basic Provisions -- Exceptions -- Planning Techniques. Chapter 5: The Definitive Acquisition Agreement -- Economic Terms -- Introductory Paragraphs -- Article I: The Merger -- Article II: Conversion and Exchange of Shares -- Dissenting Shares -- Special Issues for Articles I and II -- Representations and Warranties -- Article III: Representations and Warranties of the Target and the Shareholders -- Article IV: Representations and Warranties of the Shareholders -- Article V: Representations and Warranties of Parent [Buyer] and Merger Sub -- Covenants -- Article VI: Covenants of the Target -- Article VII: Covenants of Buyer -- Additional Agreements -- Article VIII: Additional Agreements -- Conditions to Closing -- Article IX: Conditions Precedent -- Survival of Representations and Indemnification -- Article X: Survival -- Indemnification -- Termination -- Article XI: Termination -- Miscellaneous -- Article XII: Miscellaneous -- Representing Targets: A Summary -- Appendixes -- Chapter 6: Acquisitions of Public Companies -- Public-to-Public Mergers: What is Different? -- Case Law-Developed Fiduciary Duties and Standards of Review -- Introduction -- Evolution of Fiduciary Duty Case Law and Judicial Review -- Standards: Historical Perspective -- Some Practical Considerations -- Securities Laws and Public Company Acquisitions -- Disclosure of Merger Negotiations -- SEC's Proxy and Tender Offer Rules -- Regulation M-A -- Miscellaneous -- Anti-Takeover Devices -- Staggered Boards and Other Structural Changes -- Poison Pills -- Appendix -- Chapter 7: Leveraged Buyouts (Structural and Tax Issues) and Acquisitions of a Troubled Business (Creditors' Rights and Bankruptcy) -- Leveraged Buyouts: Structural and Tax Issues -- Introduction -- LBO Structures and Their Tax Consequences -- Acquisition of a Troubled Business Generally -- Fraudulent Transfers -- Acquisitions Out of Bankruptcy -- Overview. Purchasing of Assets out of Bankruptcy -- Chapter 8: International M& -- A -- Cross-Border Acquisitions -- Inbound Acquisitions -- Outbound Acquisitions -- Extraterritorial Application of U.S. Laws -- Chapter 9: Joint Ventures -- Reasons for Joint Ventures -- Types of Joint Ventures -- Entity JVs -- Contractual JVs -- Typical Joint Venture Terms -- Scope/Business Plan -- Capitalization/Contributions -- Due Diligence -- Management/Voting -- Exclusivity/Noncompetition -- Intellectual Property -- Reversion of IP Rights -- Distributions -- Financial Reporting -- Exit-Restrictions on Transfer -- Tag-Along, ROFR, Put Right, Drag-Along -- Termination/Dissolution -- Other Considerations -- Appendix -- About the Website -- Index -- EULA.
9781119276753
Consolidation and merger of corporations--Law and legislation--United States.