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Commercial Awareness Discussion
The M&A Case Study Experiment - Part 1
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<blockquote data-quote="lonewolf7" data-source="post: 129886" data-attributes="member: 27206"><p> <ol> <li data-xf-list-type="ol">Why do you think Digion wants to buy Immersive?<br /> Like to reach into new markets. Already expanded into Canada, the US and the UK and buying Immersive, a Frankfurt-based company will allow it to reach customers in Germany as well. Plus, Immersive has a strong client base amongst game developers.<br /> <br /> Gain expertise of key individuals - Leon Alexander and Maria May, who has years of experience in game server hosting.<br /> <br /> </li> <li data-xf-list-type="ol">How would you advise Elena handle the situation with Tristan?<br /> Negotiate a non-compete clause as well as a non-solicitation clause.<br /> <br /> </li> <li data-xf-list-type="ol">What is the purpose of Clause 5 in Document 3?<br /> Clause 5 acts as a condition precedent for the share purchase to go through – this is to ensure that certain conditions favourable to the parties must be satisfied, or waived, before the acquisition can be effective.<br /> <br /> </li> <li data-xf-list-type="ol">In Clause 7, note the phrase, '<em>The Seller’s liability under the warranties and indemnities shall be subject to limitations</em>.' Suppose you were the lawyers acting for the Seller, what could you do to limit the Seller's liabilities? Why is this important?<br /> <br /> </li> <li data-xf-list-type="ol">Why could it be important to Digion that '<em>the courts of England have exclusive jurisdiction to settle any dispute</em>'?<br /> Perhaps Digion is headquartered in London and thus is most familiar with English laws. In the event of any disputes, it would be favourable for it to be settled in familiar waters.</li> </ol></blockquote><p></p>
[QUOTE="lonewolf7, post: 129886, member: 27206"] [LIST=1] [*]Why do you think Digion wants to buy Immersive? Like to reach into new markets. Already expanded into Canada, the US and the UK and buying Immersive, a Frankfurt-based company will allow it to reach customers in Germany as well. Plus, Immersive has a strong client base amongst game developers. Gain expertise of key individuals - Leon Alexander and Maria May, who has years of experience in game server hosting. [*]How would you advise Elena handle the situation with Tristan? Negotiate a non-compete clause as well as a non-solicitation clause. [*]What is the purpose of Clause 5 in Document 3? Clause 5 acts as a condition precedent for the share purchase to go through – this is to ensure that certain conditions favourable to the parties must be satisfied, or waived, before the acquisition can be effective. [*]In Clause 7, note the phrase, '[I]The Seller’s liability under the warranties and indemnities shall be subject to limitations[/I].' Suppose you were the lawyers acting for the Seller, what could you do to limit the Seller's liabilities? Why is this important? [*]Why could it be important to Digion that '[I]the courts of England have exclusive jurisdiction to settle any dispute[/I]'? Perhaps Digion is headquartered in London and thus is most familiar with English laws. In the event of any disputes, it would be favourable for it to be settled in familiar waters. [/LIST] [/QUOTE]
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