M&A Case studies

Discussion in 'Interviews Discussion' started by Zahra, Feb 11, 2019.

  1. Zahra

    Zahra Star Member
    Future Trainee

    Messages:
    26
    Trophy Points:
    32
    TCLA Credits:
    10
    • Like Like x 3
    • Useful Useful x 3
  2. Jaysen

    Jaysen Legendary Member
    Staff Member

    Messages:
    2,975
    Trophy Points:
    204
    TCLA Credits:
    2,588
    Great stuff. M&A questions/case studies are very popular at interviews!
     
  3. Daniel Boden

    Daniel Boden Legendary Member
    Premium Member

    Messages:
    455
    Trophy Points:
    209
    TCLA Credits:
    307
    Any chance someone could put the actual article on here? I can't access it :(
     
  4. BWSM201

    BWSM201 Star Member

    Messages:
    31
    Trophy Points:
    37
    TCLA Credits:
    9
    Hope this works mate :)
     

    Attached Files:

    • Like Like x 4
    • Winner Winner x 3
  5. Helena

    Helena Legendary Member
    Premium Member

    Messages:
    369
    Trophy Points:
    129
    TCLA Credits:
    217
    It works!
     
    • Friendly Friendly x 1
  6. Daniel Boden

    Daniel Boden Legendary Member
    Premium Member

    Messages:
    455
    Trophy Points:
    209
    TCLA Credits:
    307
    Thanks so much!
     
    • Like Like x 1
  7. Milos

    Milos New Member

    Messages:
    1
    Trophy Points:
    1
    TCLA Credits:
    14
    • Useful Useful x 1
  8. klaw52

    klaw52 Standard Member

    Messages:
    8
    Trophy Points:
    1
    TCLA Credits:
    36
    Hi, if anyone has any input, what would you say are the main risks/concerns associated with M&A and joint ventures, from the perspective of both parties (buyers and sellers)?
    :)
     
  9. CTST

    CTST Active Member

    Messages:
    18
    Trophy Points:
    22
    TCLA Credits:
    120
    From the perspective of the buyer:
    • Whether there is any pending litigation against the Target company
    • Whether there are any charges over any of the assets within the Target company, or whether any assets are held as collateral - you can then perhaps obtain an undertaking from the seller that the charges will be discharged before completion of the deal.
    • The value of goodwill of the Target company
     
    • Like Like x 1
  10. Romiras

    Romiras Star Member
    Future Trainee

    Messages:
    29
    Trophy Points:
    37
    TCLA Credits:
    118
    You'll also want to consider whether it should be an asset (going concern) or share purchase. Consider how you finance it, whether the assets or important parts of the Target are actually located in the Target, payment structure, etc.

    For a joint venture, you'll want to consider how the joint venture should be structured, who has to finance what and how the obligations, risk and also benefits are to be split among the parties (control), etc.
     
    • Agree Agree x 2
    • Like Like x 1
  11. CTST

    CTST Active Member

    Messages:
    18
    Trophy Points:
    22
    TCLA Credits:
    120
    Hello, was reading some articles on asset/share purchases and was wondering if anyone has any thoughts on potential tax issues to flag in the choice of structure for a share/asset purchase? :)
     
  12. Romiras

    Romiras Star Member
    Future Trainee

    Messages:
    29
    Trophy Points:
    37
    TCLA Credits:
    118
    Tax is a bit complicated for asset purchases as there a variety of factors to consider such as the asset(s) itself, whether there have been intra-group transactions that are caught by tax laws, etc. For a share purchase, there is stamp duty (at a relatively low rate).

    At interview stage, you won't really be expected to say much about tax liabilities / issues. Perhaps just note that tax liabilities / issues tend to be lower / simpler for share sales (from the perspective of the seller) and that there are certain reliefs that may be available.
     
    • Like Like x 1
  13. CTST

    CTST Active Member

    Messages:
    18
    Trophy Points:
    22
    TCLA Credits:
    120
  14. Ricky

    Ricky Star Member

    Messages:
    39
    Trophy Points:
    37
    TCLA Credits:
    168
    Here are some mind maps that I made before my A&O case study interview. Breaks down the various areas of due diligence and also how to put together the share/asset purchase agreement.
     

    Attached Files:

    • Informative Informative x 2
    • Like Like x 1
    • Winner Winner x 1
  15. CTST

    CTST Active Member

    Messages:
    18
    Trophy Points:
    22
    TCLA Credits:
    120
    Thank you, @Ricky! This is really useful stuff!
     
    • Friendly Friendly x 1

Share This Page