Business Merger Acquisition And Disposition Transactions

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A key element in buying or selling a business is that there’s only one chance to do it right! If the buyer pays too much or the seller asks too little, the ability to recoup the difference is gone forever. Understanding value in entering a transaction to merge, acquire or dispose of a business or a business interest is critical to the success of the transaction.

In addition to a variety of complexities related to a non-acquisition valuation, a transaction often presupposes an “investment or strategic” standard of value which must consider acquirer synergistic advantages. Such advantages can, and should, influence transaction pricing.

Another critical aspect that will influence transaction pricing is the tax structure. Whether the transaction is an asset purchase or a stock purchase or any number of possible variations, influences transaction pricing greatly.

In the 1990s value multiples of 6 to 12 times EBITDA (earnings before interest, taxes, depreciation and amortization) were common. Unfortunately, the poor performance of the public stock markets in recent years is in large part due to inflated purchase prices during that period.

Chugh CPAs, LLP has extensive experience, working on a lot of transactions in the last 18 years. Moreover, each of the Group’s members has extensive experience in corporate and business tax matters, including acquisitions, dispositions and mergers. This experience allows for careful consideration of appropriate tax structures and the influence of each on the pricing of the deal.

When a purchase or sale is being contemplated, it is absolutely necessary to understand the value of a business. Don’t find yourself paying too much or selling for too little. Call our Business Valuation Services Group first to help you understand the value of your subject company and how to structure the best deal.

The decision to acquire or divest a business or property is riddled with complexities, often requiring resources and expertise outside of the common realm. The time and commitment necessary to perform due diligence, integrate systems, negotiate terms, assess the accounting impact of the transaction, and plan the most tax effective and efficient structure can overwhelm the most capable internal finance teams.

Chugh CPAs, LLP’s professionals bring extensive experience with M&A activities. We use this expertise to assist businesses in every phase of the M&A process, reducing distractions as well as minimizing risks associated with M&A activities.

A partial listing of our transaction support services includes:

  • Pre-acquisition due diligence and strategy
  • Attestation
  • Target valuation
  • Alternative deal structuring
  • Formulation of financial and operational integration plans
  • Interim staff augmentation
  • Interim or permanent executive placement
  • Tax strategies and support
  • Ongoing post-transaction support
  • Deal negotiation
  • Exit strategy
  • Find buyer or target Firm
  • Target representation

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