FREE online courses on Mergers & Acquisitions - Chapter 2 - M & A Closing

 

Once all issues have been included and addressed to the satisfaction of both companies, the merger and acquisition is executed by signing the M & A Agreement. The buyer and the seller along with their respective legal teams meet and exchange documents. This represents the closing date for the merger and acquisition. The transaction takes place through the exchange of stock, cash, and/or notes. Once the agreement has been finalized, a formal announcement is made concerning the merger between the two companies.

 

It should be noted that due diligence extends well beyond the closing date. Therefore, actual payment may be deferred until legal opinions can be issued, financial statements audited, and the full scope of Phase II Due Diligence can be completed. It is not uncommon for many conditions to remain open and thus, the M & A Agreement may require amendments to cover the results of future due diligence.