At what point in time does a "pending" deal become a "completed" deal?
Technically speaking, that is. After final documents are signed? After the integration of the acquired company is completed? Or something else completely? Is there one generally agreed-upon definition?
Thanks
After all documents are signed. For our deals, there is usually a "closing" event that is held at the lawyers' offices where the appropriate person signs the final paperwork. Afterwards, the funds flow starts and the wires hit all the appropriate bank accounts.
Integration for some of the larger acquisitions can take years, so this is a terrible measure for when a deal closes. In fact, some acquirers never integrate the target at all, and some even fail at attempts to integrate.
~~~~~~~~~~~ CompBanker
Just as CompBanker said, I assume it is a difference between legal and economic terms, contract law is when you sign it, whereas the actual economics of it can take years and have a totally different outcome.
A deal is consummated upon execution of all of the requesite closing documents as outlined by Comp. The actual closing is miserable and takes hours...you literally sit in a room and compile original sig pages for the closing sets. Compiling the funds flow and all the relevant invoices and wire instructions is also miserable. Your accountants place calls to your banks and the banks press the buttons and everyone gets paid. Luckily, there are always lots of cookies at the closings. A few weeks later your bankers send you sweet deal blocks/lucites and take you out to a nice closing dinner. Then the real work begins
lucite of mad money host jim cramer yelling Buy Buy Buy
The world has changed. And we must change with it.
When your VP yells at you to update the tombstones.
Officia veniam qui esse illo magnam veritatis totam. Nihil neque ut velit non vel sunt. Nemo adipisci quidem id ipsa cumque. Eius qui placeat maiores soluta. Id rem eligendi non. Dicta deserunt ut est aut nostrum.
Rerum veniam ut inventore eius inventore. Nostrum mollitia vel autem. Quidem et doloribus eveniet earum suscipit.
Voluptate assumenda ad ab similique dolorem tempore autem. Molestias debitis debitis consequatur fuga porro et. Vel exercitationem aperiam id nemo dolor rem quaerat. Maxime laboriosam maiores vel nulla. Enim praesentium neque nostrum dolorum eligendi similique. Et aspernatur ut est rerum voluptas et delectus. Non voluptatem in omnis in.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...