TreatiseTreatise

Mergers, Acquisitions & Tender Offers: Law and Strategies - Corporate, Securities, Taxation, Antitrust, Cross Border

 by Samuel C Thompson
 
 Copyright: 2010-2014
 Last Updated: September 2014

 Product Details >> 

Product Details

  • ISBN Number: 9781402414435
  • Page Count: 6200
  • Number of Volumes: 5
  •  
  • The purchase of PLI titles may include Basic Upkeep Service, whereby
    supplements, replacement pages and new editions may be shipped
    to you immediately upon publication for a 30-day examination. This
    service is cancelable at any time.

Watch author, Samuel Thompson, Jr. discuss the components of his new PLI treatise.

Mergers, Acquisitions and Tender Offers provides you with battletested, real-world advice on the entire M&A process. Packed with best practices, planning tips, checklists, and sample documents, Mergers, Acquisitions and Tender Offers provides comprehensive coverage of all aspects of the deal, including:

  • Contract law
  • Corporate and federal securities law 
  • Federal income tax, financial accounting and valuation techniques 
  • Domestic and cross-border M&As 
  • Ethical issues

The treatise’s well-stocked toolkit includes real-world acquisition agreements • a confidentiality agreement and letter of intent • annotated IPO on Form S-1 • private offering memorandum • SEC disclosure documents for recent public company negotiated acquisitions • tender offer documents • required SEC reports • investment banker engagement letters • and recent M&A deal documents.

  Preface
  Table of Contents
Chapter 1: Introduction
  • § 1:1 : Scope of Book1-2
  • § 1:2 : Scope of Chapter1-8
  • § 1:3 : Introduction to Consensual Transactions1-8
    • § 1:3.1 : The Starting Point: Valuation and Due Diligence1-8
    • § 1:3.2 : Structuring the Transaction: Tax and Corporate Law Considerations1-9
      • [A] : In General1-9
      • [B] : Stock Purchase Structure1-10
      • [C] : Asset Purchase Structure1-11
      • [D] : Direct Merger Structure1-11
      • [E] : Reverse Subsidiary Merger Structure1-12
      • [F] : Forward Subsidiary Merger Structure1-13
      • [G] : Compulsory Share Exchange Structure1-14
      • [H] : Short-Form Merger Structure1-15
    • § 1:3.3 : Drafting the Acquisition Agreement1-16
    • § 1:3.4 : Federal Securities Laws Considerations1-17
    • § 1:3.5 : Antitrust, Pre-Merger Notification, and Regulatory Considerations1-17
  • § 1:4 : Introduction to Tender Offers and Related Transactions1-18
  • § 1:5 : Do the Shareholders of the Target and Acquirer Benefit in Mergers and Acquisitions?1-21
    • § 1:5.1 : Introduction1-21
    • § 1:5.2 : Recent Evidence that Acquirer Shareholders Are Benefiting in More Mergers1-24
  • § 1:6 : Strategy for Approaching Mergers1-25
  • § 1:7 : The Current M&A Scene1-26
    • § 1:7.1 : Introduction1-26
    • § 1:7.2 : Strategic, Private Equity, and SPAC Deals1-27
    • § 1:7.3 : Past Trends in U.S. M&A Activity1-28
    • § 1:7.4 : Introduction to Recent Data on the M&A Marketplace1-30
    • § 1:7.5 : Recent Trends in U.S. M&A Activity1-31
    • § 1:7.6 : Recent Trends in U.S. and Worldwide M&A Activity1-35
    • § 1:7.7 : Recent U.S. M&A Volume Related to Aggregate GDP1-35
    • § 1:7.8 : Recent U.S. M&A Volume As a Percentage of Aggregate GDP1-36
    • § 1:7.9 : Recent U.S. M&A Volume Related to Investment Component of GDP1-37
    • § 1:7.10 : Recent U.S. M&A Volume Related to the S&P 5001-39
    • § 1:7.11 : Recent U.S. M&A Activity by Type of Transaction1-40
    • § 1:7.12 : Recent P:E Ratios and Premiums Paid in U.S. Public Deals1-41
    • § 1:7.13 : Recent U.S. Payment Trends: Cash, Stock, Mixed, and Other1-43
    • § 1:7.14 : Recent Data on Acquisitions of Publicly Traded Companies1-44
    • § 1:7.15 : Recent Data on Acquisitions of Privately Owned Companies1-46
    • § 1:7.16 : Recent Private Equity Capital Raising and Equity Contributions1-46
    • § 1:7.17 : Recent Data on U.S. Deal Size1-50
    • § 1:7.18 : Recent Data on U.S. Regional Buyer Activity1-51
    • § 1:7.19 : Recent Data on U.S. Regional Seller Activity1-52
    • § 1:7.20 : Recent Data on the Percentage of S&P 500 Companies with a Shareholder Rights Plan, Poison Pill1-53
    • § 1:7.21 : Recent Data on the Percentage of S&P 500 Companies with Various Types of Defensive Measures1-55
    • § 1:7.22 : Recent Data on U.S. Tender Offers, Contested and Uncontested1-57
    • § 1:7.23 : Recent Data on the Rise of Two-Step Transactions and the Top-Up Option1-58
    • § 1:7.24 : Recent Data on U.S. Termination Fees1-60
    • § 1:7.25 : Recent Data on Matching Rights in Negotiated Deals1-62
    • § 1:7.26 : Recent Data on Go-Shops in Negotiated Deals1-63
    • § 1:7.27 : Recent Information on Bankruptcies1-64
    • § 1:7.28 : Recent ABA Deal Point Studies1-64
    • § 1:7.29 : Recent Information on the Top Ten M&A Investment Banks and Law Firms Ranked by U.S. Deal Size1-64
    • § 1:7.30 : Proxy Contest for the Five Year Period, 2009 to 20131-66
    • § 1:7.31 : Recent Data on Cross-Border M&A Activity1-67
    • § 1:7.32 : Recent Data on the Top Ten Foreign Buyer Countries1-70
    • § 1:7.33 : Recent Data on the Top Ten Foreign Seller Countries1-70
    • § 1:7.34 : The Trapped Foreign Income Problem and M&A1-71
    • § 1:7.35 : The Inversion Problem, Pfizer and Beyond1-72
    • § 1:7.36 : Preliminary Report on M&A Activity in 20141-73
  • § 1:8 : Introduction to Corporate Governance Issues Generally1-73
    • § 1:8.1 : Background1-73
    • § 1:8.2 : Overview of Corporate Governance at the State Level1-75
    • § 1:8.3 : Overview of Corporate Governance at the Federal Level1-75
    • § 1:8.4 : Overview of Corporate Governance Provisions in SOX1-76
    • § 1:8.5 : Overview of Corporate Governance Provisions in Dodd-Frank1-77
  • § 1:9 : Guide to References1-78
Chapter 2: General Principles in Drafting an Acquisition Agreement—Merger Agreement, Asset Acquisition Agreement, and Stock Purchase Agreement
  • § 2:1 : Scope2-12
    • § 2:1.1 : References2-18
  • § 2:2 : Basic Principles of Contract Interpretation2-18
    • § 2:2.1 : In General2-18
    • § 2:2.2 : First Principle of Contract Interpretation: Clear Meaning2-19
    • § 2:2.3 : Second Principle of Contract Interpretation: Parol Evidence2-19
    • § 2:2.4 : Third Principle of Contract Interpretation: Forthright Negotiator2-19
    • § 2:2.5 : Summary of the Three Principles2-20
    • § 2:2.6 : Fourth Principle of Contract Interpretation: Implied Covenant of Good Faith and Fair Dealing2-21
    • § 2:2.7 : Related Concept of Tortious Interference2-26
      • [A] : Introduction2-26
      • [B] : Illustrations—NACCO and Guidant2-26
      • [C] : Tortious Interference with Prospective Advantage, Plus Punitive Damages—Ventas2-29
    • § 2:2.8 : Potential Fraud Claim—NACCO, Airborne, and Narrowstep2-36
    • § 2:2.9 : Reforming Contracts–Cambridge North2-41
    • § 2:2.10 : Consciously Leaving Gaps in a Contract2-43
    • § 2:2.11 : Amendment to the Delaware Code Extending the Time for Contract Claims2-44
  • § 2:3 : Introduction to Stock Purchase Agreements, Asset Acquisition Agreements, and Merger Agreements2-44
  • § 2:4 : Advantages and Disadvantages of Stock Purchase Agreements, Asset Acquisition Agreements, and Merger Agreements2-45
    • § 2:4.1 : Introduction2-45
    • § 2:4.2 : Stock Purchase Agreements2-45
    • § 2:4.3 : Asset Acquisition Agreements2-47
    • § 2:4.4 : Merger Agreements2-47
    • § 2:4.5 : Advantages of Ensuring That a Target Continues As a Subsidiary of the Acquirer2-48
  • § 2:5 : Outline of Common Provisions of Acquisition Agreements2-49
  • § 2:6 : The Parties to the Transaction2-50
  • § 2:7 : The Whereas Clauses2-51
  • § 2:8 : Defined Terms2-52
  • § 2:9 : Description of the Basic Purchase and Sale or Merger Transaction2-52
    • § 2:9.1 : Introduction2-52
    • § 2:9.2 : Purchase Price Considerations, Including the Exchange Ratio2-53
      • [A] : Introduction2-53
      • [B] : Structuring the Cash Payment or Exchange Ratio in Public Company Mergers: Caps, Floors, and Collars2-54
        • [B][1] : Cash Consideration2-54
        • [B][2] : Fixed Exchange Ratio2-54
        • [B][3] : Fixed Value Exchange Ratio2-55
        • [B][4] : Floating Value Exchange Ratio with a Collar2-56
        • [B][5] : Fixed Value Exchange Ratio with a Collar2-57
      • [C] : Inclusion of a “Ticking Fee” Payable If the Closing Is Delayed—Dow–Rohm and Haas2-58
      • [D] : Structuring the Purchase Price in a Stock Acquisition of a Closely Held Target2-59
      • [E] : Structuring the Purchase Price, Assets to Be Acquired, and Liabilities to Be Assumed in an Asset Acquisition of a Closely Held Target2-60
      • [F] : Post-Closing Purchase Price Adjustments, Escrows, and Earn-Outs2-63
        • [F][1] : In General and the ABA, 2009 Private Target Deal Point Study2-63
        • [F][2] : Working Capital and Net Worth Adjustments2-65
          • [F][2][a] : Working Capital Adjustments2-65
          • [F][2][b] : Net Worth Adjustments2-67
        • [F][3] : Earn-Outs2-68
          • [F][3][a] : In General2-68
          • [F][3][b] : Earn-Outs and the Implied Covenant of Good Faith and Fair Dealing—Viacom2-70
        • [F][4] : Contingent Value Rights or CVRs2-71
          • [F][5] : Binding the Target’s Shareholders to the Post-Closing Adjustment Process—Aveta2-73
      • [G] : Addressing the Potential for Successor Liability for the Acquirer in an Asset Acquisition2-73
        • [G][1] : In General2-73
        • [G][2] : Successor Liability Under Bulk Sales Laws in Asset Acquisitions2-74
        • [G][3] : Successor Liability Under State Tax Laws in Asset Acquisitions2-76
        • [G][4] : Successor Liability for the Target’s Defective Products in Asset Acquisitions2-76
          • [G][4][a] : Introduction2-76
          • [G][4][b] : The Pennsylvania Approach2-77
          • [G][4][c] : The California Approach2-79
          • [G][4][d] : The New Jersey Approach2-80
          • [G][4][e] : The Florida Approach2-80
        • [G][5] : Successor Liability for the Target’s Environmental Torts in Asset Acquisitions2-81
        • [G][6] : Successor Liability for the Target’s General Torts in Asset Acquisitions2-84
        • [G][7] : Dealing with Potential Successor Liability in the Asset Acquisition Agreement2-86
        • [G][8] : Successor Liability Under the Labor Laws2-87
        • [G][9] : Determining the Applicable Law2-87
      • [H] : Duty to Warn2-89
      • [I] : Dealing with the Treatment of a Target’s Outstanding Stock Options2-90
      • [J] : Special Issues in the Acquisition of a Division or Subsidiary2-92
        • [J][1] : Introduction2-92
        • [J][2] : Dealing with Financials of the Acquired Business2-92
        • [J][3] : Dealing with Assets and Liabilities and “Right-Sizing” the Acquired Business2-92
        • [J][4] : Properly Structuring the Seller’s Representations, Warranties, and Covenants2-93
        • [J][5] : Post-Acquisition Support Agreement2-93
        • [J][6] : Potential for Breach of Fiduciary Duty with Respect to a Support Agreement2-94
    • § 2:9.3 : Exclusion from Transferred Assets Attorney-Client Communications—Great Hill2-96
  • § 2:10 : The Representations and Warranties: The Snapshot2-96
    • § 2:10.1 : In General2-96
    • § 2:10.2 : Disclosure Schedules2-99
      • [A] : In General2-99
      • [B] : Disclosure Under One Representation Recognized Under Another Representation2-100
      • [C] : Post-Signing Amendments to the Disclosure Schedule2-102
    • § 2:10.3 : Materiality Qualification2-102
    • § 2:10.4 : Material Adverse Effect Qualifier and Relationship to Material Adverse Change2-103
    • § 2:10.5 : Knowledge Qualification2-105
      • [A] : In General2-105
      • [B] : Whose Knowledge?2-106
      • [C] : What Is Knowledge?2-106
      • [D] : Particular Importance in Private Deals2-107
      • [E] : Dueling Qualified and Non-Qualified Representations—DCV2-107
    • § 2:10.6 : Common Target Representations and Warranties2-110
      • [A] : Introduction2-110
      • [B] : Organization, Standing, and Power2-110
      • [C] : Capital Structure2-111
      • [D] : Authority to Enter the Agreement, No Conflict, and Required Consents2-112
        • [D][1] : In General2-112
        • [D][2] : Dealing with Change of Control Provisions in Contracts2-114
      • [E] : Financial Statements, SEC Documents, and SOX Issues2-115
        • [E][1] : In General: GAAP and Fairly Presents2-115
        • [E][2] : Impact of FIN 48 on GAAP Representation and Warranty2-116
        • [E][3] : Specific Representation Regarding Compliance with Internal Control and Disclosure Control Requirements of SOX2-117
        • [E][4] : The ABA Deal Point Studies2-118
      • [F] : No Undisclosed Liabilities2-118
        • [F][1] : In General2-118
        • [F][2] : The ABA Deal Point Studies2-119
      • [G] : Absence of Certain Changes: No MAC or MAE Since Last Financials2-120
      • [H] : Compliance with Applicable Laws and Reporting Requirements2-122
        • [H][1] : In General2-122
        • [H][2] : The ABA Deal Point Studies2-124
      • [I] : Litigation2-124
      • [J] : Taxes2-129
        • [J][1] : In General2-129
        • [J][2] : Dealing with the Foreign Investment in Real Property Tax Act (FIRPTA) in Stock Purchase Agreements2-133
      • [K] : Material Agreements to Which the Target Is a Party2-135
      • [L] : Benefit Plans2-136
      • [M] : Labor and Employment Matters2-138
      • [N] : Subsidiaries2-139
      • [O] : Environmental2-140
      • [P] : Properties and Sufficiency of Assets2-141
      • [Q] : Intellectual Property2-142
      • [R] : Insurance2-143
      • [S] : Brokers or Finders2-144
      • [T] : Approval of the Agreement by the Target’s Board and No Takeover Statutes2-144
      • [U] : Shareholder Vote Required to Approve the Transaction2-145
      • [V] : Opinion of Financial Adviser2-146
      • [W] : Inapplicability of the Target’s Poison Pill2-146