- What is the difference between a trade sale and a share sale?
A share sale is where the shareholders of a company sell their shares. A share sale can either be a complete sell out or a partial selldown.
A trade sale is where the company sells its business assets. The underlying ownership of the selling entity does not change. Only ownership of the assets being sold changes.
- How do mergers work?
A merger involves two companies combining. Instead of receiving cash, the shareholders in the smaller company (called the “target”) will usually swap their shares for shares in the larger company (the “acquirer”).
- How do I get my startup ready for an exit event?
Before finding a buyer, it is important that you go through a pre-sale process with both a lawyer and an M&A adviser. That will assist in identifying any issues that could otherwise cause your exit event to become delayed, fall over, cause a poor tax outcome or negatively affect the potential purchase price.