Strategic Sale

Sale or Merger

In a sale or merger, the transaction consideration could be in the form of cash,  public or private stock, and possibly additional contingent  consideration.  Various tax and hedging strategies could be employed to ensure  the risks associated with holding a large block of shares is minimized. 

Benefits of a Strategic Sale

  • A sale to, or merger with, a strategic acquirer could provide the highest valuation and broadest transaction possibilities among all liquidity options.
  • Synergies and availability of capital could enhance performance and competitiveness dramatically.
  • Possibility of being a platform company within a buyer organization.
  • Opportunity for enhanced financial returns via deal structure and incentive payments.
  • Option of selling up to 100% of the company would minimize risks associated with future performance.

Drawbacks of a Strategic Sale

  • Management may not maintain the present level of autonomy.
  • Current organizational structure may be substantially altered.
  • Subject to acquirer’s ability to integrate past/future transactions.

Other Liquidity Options