Category Archives: M & A

1 in 3 Companies Constrained by Corruption

jim-kimBy Dr. JimYong KimM.D., Ph.D. is the President of the World Bank Group. Soon after he became president in July 2012, the organization established two goals: ending extreme poverty by 2030 and boosting shared prosperity for the bottom 40 percent of the population in developing countries. Kim’s career has been focused on health, education, and delivering services to the poor.

Approximately one in three companies around the world identify corruption as a major constraint to operating their business. We can and must do much more to combat corruption. It poses an enormous obstacle to the global goal of ending extreme poverty, denying resources to the poor and undermining the delivery of services to the vulnerable. 

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Actions Immediately after Closing the Acquisition Deal

drjohn11aBy Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com,  Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 16th and last of a Series of  short articles on “HOW TO BUY THE RIGHT COMPANY”  that have been posted herein.

Once you close the deal, you need to be prepared to go in the very next morning to meet with your management team as well as your entire staff.

What you do in the first days and weeks will set the tone for your relationship with your employees for some time to come, possibly even the duration of your ownership.

Remember that the chief concerns of your employees and managers may be somewhat different than your own agenda. Employees will be concerned, first and foremost about their own job security and future with the company now that it is under new ownership.

Management shares this concern, and may also have more narrow issues facing them in their own departments, that nevertheless they may feel requires immediate attention.

An easy model to follow includes a short initial introductory meeting with management, an all-employee meeting to include all management and non-management staff, and then a third more formal meeting with management.

These meetings will set in motion the planning to carry out the three objectives of the transition: addressing your key constituencies (employees, customers, suppliers and bankers), revision of the action plan, and implementation of significant changes outlined in the plan.

Other meetings will follow in the first days and weeks, but it is essential to try to fit these first three meetings into the first day if at all possible.

As a new owner, you must be careful to listen carefully, building trust and goodwill with your new employees.

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Briefly Reviewing the Closing of the Acquisition Deal

JP Bio PhotoBy Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com,  Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 15th of a Series of  short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week

Here we briefly review the closing of the Acquisition deal. The key aspect of this step is the preparation and signing of the purchase agreement and other documents needed for closing.

Beyond the legal requirements of having a purchase agreement, the preparation of the document itself is an important aspect of the due diligence process. Because of the representations and warranties a seller is obligated to vouch for, frequently, problems surface during this period that you may not otherwise uncover. For this reason, it is very important to begin work on the purchase agreement as soon as the letter of intent is signed and you begin formal due diligence.

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