Mergers and acquisitions (M&A) are rarely limited to the negotiation and signing of a share purchase agreement. An M&A transaction is a multi-stage process involving the preparation of the target company for a potential sale, preliminary negotiations between the parties, due diligence, valuation and purchase price discussions, the allocation of risks between buyer and seller, […]
Performance-Based Payments in M&A: The Earn-Out Mechanism
In M&A transactions, it is common for buyers and sellers to struggle to agree on the company’s valuation. This is particularly the case for early-stage technology companies, where different valuation methods and approaches, diverging growth projections, and the lack of comparable transactions can significantly widen the gap between the parties’ expectations. One method frequently used […]
What is Convertible Debt as a Method of Quick Access to Finance?
There is no doubt that gaining access to investment is crucial for startups, but equally vital is accessing it swiftly. In investment rounds, parties must agree on both the company’s valuation and lengthy investment agreements, which often prolongs the process. Valuing startups, particularly in their early stages, is challenging, yet determining the company’s value is […]
What is the Difference between the Premium Share Price Paid by the Investor and the Nominal Value of a Share and How is it Calculated?
What Is the Nominal Value of a Share? The nominal value of a share is the value assigned to each share when a company’s share capital is divided into shares. It is used to determine the number of shares representing the company’s registered capital and should not be confused with the actual or market value […]
Key Elements of Legal Due Diligence
The standard M&A deal usually commences with the formalisation and signing of a letter of intent and a non-disclosure agreement. Following this, a data room is assembled in alignment with the buyer’s legal due diligence checklist. Concurrently, negotiations on transaction documents ensue, driven by insights gained through the due diligence process. For the buyer, the […]
TURKEY: Comparative M&A Guide
In the dynamic landscape of global business, mergers and acquisitions (M&A) play a pivotal role in shaping the economic trajectory of nations. This comprehensive guide delves into the intricacies of Turkey’s M&A landscape, providing a comparative analysis that illuminates the legal dimensions of transactions within the country. Deal Structure 1- How are private M&A transactions […]
