Guidance for Evaluating M&A Transactions, Private Company Director

01.20.2016

In an article published on Jan. 18, 2016, Andrew Lohmann and Lisa Hedrick provide insight into the 2015 Private Target Deal Points Study released by the American Bar Association. The biennial study has long been used as a reference for those responsible for negotiating mergers and acquisitions (M&A) transactions. The article details guidance for directors of target companies in an M&A transaction, including details on transaction structure, the decreased use of escrows and indemnification limitations. Hedrick and Lohmann also provide guidance for directors of acquirers in an M&A transaction including information on holdbacks vs. escrows and special indemnification obligations. “Though company officers and advisors are typically the individuals directly negotiating the terms of M&A transactions, directors tasked with evaluating and ultimately improving these transactions will benefit from a deeper understanding of deal trends for privately-held companies,” explains Lohmann and Hedrick. For the full article, you may click here.