Deal Structuring and Financing

Abstract

This chapter covers the various ways with which an M&A deal can be structured so as to reap maximum benefit to both the parties involved. A deal can be structured as a merger, acquisition, asset purchase, etc. Depending upon the deal structure, mode of payment has to be chosen keeping in mind the implication of each mode. The choice of deal structure is affected by vehicle for acquisition, mode of payment, legal considerations, tax impacts, etc. The deal can also be structured as two-stage stock acquisition, triangular merger, leveraged buyout, single-firm recapitalization, etc. The calculation and implications of swap ratio are also covered with suitable examples.