When a company is involved in an M&A, either as a buyer or a target, analyzing the prospective transaction to determine if it makes sense for shareholders is critical. Knowing the basics of when or if a deal makes practical and financial sense is helpful, but seeking help from a qualified professional to analyze the pros and cons in depth is a must.
Around the world, businesses are emerging from various pauses and lockdowns, some in better shape than others. Many businesses continue to grow and prosper, and many likely are doing so through a merger or acquisition. Others are looking to merge into or be acquired by other businesses.
The M&A market was active before the COVID-19 pandemic shut down many operations. Many pending deals were put on hold, and "proceeding with caution" has become the overriding philosophy of the new M&A marketplace.
The TCJA, which was passed late in 2017, runs some 70,000 words, and experts continue to pore over its provisions. Of particular interest to businesses are the provisions that affect the wide world of M&A. Any business that thinks an M&A may be in its future should know what's changed thanks to the TCJA.
All mergers are different, and at times the end goal of setting up a new company that results from the merger is front and center in one's mind. Joy and pure excitement come at closing the deal, but if this is a family business, a mixed bag of emotions follows fast.
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