In a sale or merger,
the transaction consideration could be in the form of cash, public or private stock, and possibly additional contingent consideration.
Various tax and hedging strategies could be employed to ensure the risks associated with holding a large block of shares is
of a Sale or Merger
- A sale to, or merger with, a strategic acquirer
could provide the highest valuation and broadest transaction possibilities among all liquidity options.
- Synergies and availability
of capital could enhance performance and competitiveness dramatically.
- Possibility of being a platform company
within a buyer organization.
- Opportunity for enhanced financial
returns via deal structure and incentive payments.
- Option of selling up to 100% of the company would minimize
risks associated with future performance.
Drawbacks of a Sale or Merger
- Management may not maintain the present
level of autonomy.
- Current organizational structure may be substantially altered.
- Subject to acquirer’s
ability to integrate past/future transactions.