Acquisitions involve the takeover of one “target entity” by another entity (the “acquiring entity”). Their aim is to achieve value. Successful acquisitions play a significant role in business growth. Through them, businesses can expand into new markets, increase their range of products and services, and their competitiveness. Not all acquisitions are successful. Given that they […]
Successful Acquisitions Read More »
What is meant by ‘mergers and acquisitions’? The term refers to that category of transactions which come about where one company wants to buy, or make a significant investment in, another company’s business. Whether you are considering selling your business, or whether you are looking to acquire an existing business, the stages through which the
With the one-year grace period for compliance with the Protection of Personal Information Act (POPI) ending on the 30th of June 2021, it’s difficult to think about anything outside of your own organisation’s compliance (well at least for us compliance fanatics, that is). However, if you’re considering an M&A deal currently or in the future,
M&A Deals: Have you thought about POPI? Read More »
The National Credit Act 34 of 2005 (“NCA”) requires that, if you are selling your shares or assets in a company to a purchaser, and you have structured the sale such that: The full purchase price, or a portion thereof, will be paid at a later stage either in installments or one bullet payment; and
Selling Shareholders Beware: How the NCA affects Vendor Financed Transactions Read More »
A sale of business or shares usually follows a predictable pattern. In many cases, the seller agrees to transfer business assets or shares before receiving final payment, which is referred to as a ‘deferred payment’ or ‘deferred loan’. A seller may agree to transfer ownership on a deferred payment basis for various reasons, including a
Deferred Payment Sales: Risks and Mitigation Tips for Sellers Read More »
Navigating a term sheet for the first time can be a daunting process. In this article, Caveat private equity specialist Panel Member, Sarah Lawrence, answers some of the most common questions asked by entrepreneurs. What is a term sheet? A term sheet is a summary of the key commercial and legal terms upon which an
The Term Sheet: Notes for its Navigation Read More »
As an entrepreneur, reaching the stage of seeking investment can be very exciting. You dream of all the ways in which your business can grow bigger and faster with funding, but each time realise that investors won’t commit cash until they have completed a due diligence investigation. The idea of your company documents being checked
Due Diligence Investigations: Getting your business DD-Ready Read More »
In the commercial world, the terms ‘company’ and ‘business’ are often used interchangeably. Statements such as “my business employs 20 people” or “my company manufactures handbags” are commonplace, but what exactly do they mean? In law, a company and a business are distinct concepts, and the purchase of a company has different legal consequences to
Buying a Business vs Buying Shares: a Comparison Read More »
