The value of a business drives many things such as sales price and equity value. Whether you are a business owner looking to sell your company, an investor evaluating potential opportunities or a financial professional, understanding the key factors that affect...
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Business Transactions
Indemnification clauses in contracts
Indemnification clauses in commercial contracts are essential provisions that allocate risk and provide financial compensation for damages and losses. These clauses establish the obligation of one party (the indemnitor) to indemnify and hold harmless the other party...
Businesses can use securities to raise capital
There comes a time for many growing businesses to seek funding from outside investors. One option is to offer securities in the business. The investor pays for an interest in the business that can be structured in many ways, equity, debt, convertible securities or a...
Should health providers partner with private equity?
Some may be surprised that 30% of doctors work in independent practices, while hospital systems, health insurers or private equity firms employ 70% of medical doctors. The largest increase among the three employers is private equity and health insurers, with a 32%...
Preparation is essential when selling your company
Many founders, owners or CEOs spend their career building a successful business. It involves making strategic business decisions, picking the right personnel, reading market trends and creating products and services. It is smart leadership and due diligence. Still,...
Purchase price adjustments provide protections when structuring M&A deals
An estimated 95% of M&A deals, usually privately held but sometimes public, include a purchase price adjustment. This mechanism confirms the actual value of the target company at or after closing. These adjustments put the buyer and seller on equal footing and...
Does your M&A NDA do what it should?
Companies use non-disclosure agreements to protect themselves and the ongoing viability of their business as they enter and exit business agreements with employees, vendors and business partners. When using these agreements, the company should ask two key questions:...
Passive real estate investments can be a viable option
Those who are financially strategic understand the necessity of diversifying their investment portfolio. Real estate investments are often complementary because they are less volatile than the stock market and include a finite and insured inflation hedge. Investors...
How to address differences between the appraisals and offer price
One issue that can kill a real estate transaction is the gap between the offer and the appraisal. Banks typically will only lend the amount they think the property is worth. For example, the buyer's offer for an apartment building may be $10 million, but the bank's...
What to consider before buying a property with an easement attached
Commercial property with an easement can be an excellent investment, but it is essential to understand precisely how it will impact the property and its value before closing the deal. Easements are legally binding interest in a property that enables non-owners or...