Mergers & Acquisitions For Dummies

Mergers & Acquisitions For Dummies (9781119543862) was previously published as Mergers & Acquisitions For Dummies (9780470385562). While this version features a new Dummies cover and design, the content is the same as the prior release and should not be considered a new or updated product.

The easy way to make smart business transactions

Are you a business owner, investor, venture capitalist, or member of a private equity firm looking to grow your business by getting involved in a merger with, or acquisition of, another company? Are you looking for a plain-English guide to how mergers and acquisitions can affect your investments? Look no further.

Mergers & Acquisitions For Dummies explains the entire process step by step—from the different types of transactions and structures to raising funds and partnering. Plus, you''ll get expert advice on identifying targets, business valuation, doing due diligence, closing the purchase agreement, and integrating new employees and new ways of doing business.

• Step-by-step techniques and real-world advice for making successful mergers and acquisitions
• Covers international laws and regulations
• How to take advantage of high-value deals

Going beyond the case studies of other books, Mergers & Acquisitions For Dummies is your one-stop reference for making business growth a success.

Introduction 1

About This Book 1

Conventions Used in This Book 2

What You’re Not to Read 3

Foolish Assumptions 3

How This Book Is Organized 4

Part 1: Mergers & Acquisitions 101 4

Part 2: Taking the First Steps to Buy or Sell a Company 4

Part 3: Starting the Deal on the Right Foot 4

Part 4: Firming Up the Deal 5

Part 5: Closing the Deal and Beyond! 5

Part 6: The Part of Tens 5

Icons Used in This Book 6

Where to Go from Here 6

Part 1: Mergers & Acquisitions 101 9

Chapter 1: The Building Blocks of Mergers and Acquisitions 11

Defining Mergers and Acquisitions 11

Introducing Important Terms and Phrases 12

Buyer 13

Seller 14

Transaction (also known as the deal) 16

Consideration 16

EBITDA 16

Adjusted EBITDA 17

Closing 17

Adhering to Basic M&A Rules and Decorum 18

Follow the steps to getting a deal done 18

Understand M&A etiquette 20

Know what to tell employees — and when 20

Considering the Costs Associated with M&A 21

Tallying advisors’ fees and other costs 22

Paying off debt 22

Post-closing adjustments 22

Sigh talking taxes 23

Determining What Kind of Company You Have 23

Sole proprietorship 24

Small business 25

Middle market and lower middle market company 25

Large company (and beyond) 25

Chapter 2: Getting Ready to Buy or Sell a Company 27

Considering Common Reasons to Sell 28

Retirement 28

Let someone else take the company to the next level 29

Divesting a division or product line 30

The industry is changing 31

I’ve got troubles, troubles, troubles 31

Selling a piece of the company 33

Planning Ahead to Ensure a Smooth Sale 35

Clean up the balance sheet 36

Pay off debt 37

Address legal issues 38

Trim staff and cut dead weight 38

Increase sales 39

Quantify owner’s expenses and other add backs 39

Owner, make thyself expendable 40

Exploring Typical Reasons to Acquire 41

Make more money 41

Gain access to new products and new markets 41

Implement vertical integration 41

Take advantage of economies of scale 42

Buy out a competitor 42

Prepping before an