Pub K
Speed is a Key Component of Successfully Executing a Stock-for-Stock Merger
Morrison & Foerster – The general notion among M&A practitioners is that time kills deals. That is even more the case in public deals and even more so in a stock-for-stock deal. Each day the deal is not signed, the risk grows that some event occurs that swings the buyer’s or the target’s stock, throwing off valuations and making the deal now impossible to reach a signing. The most effective antidote to this risk: speed. That said, the benefits of speed must be balanced with those of allowing sufficient time to conduct a full due diligence process and negotiate key deal terms. Striking the right balance can be difficult. But there are certain avenues you can take to best position yourself to do so.