M & A Company Acquisitions
Presenters : Caryn Maitland CA(SA) , Carmen Westermeyer CA(SA)
Overview
This webinar will explore the essential considerations when acquiring a business, from initial valuation and due diligence to financing and legal compliance. Whether you're looking to buy or sell a company, understanding the legal, financial, and strategic implications is key to a successful transaction. We will also address the complexities of purchasing shares versus assets, the role of related party transactions, and the impact on solvency and liquidity. The webinar will equip participants with the knowledge to navigate company acquisitions confidently and ensure all necessary legal and accounting aspects are covered.
Learning Objectives
Attending this webinar will equip you with the following skills: • Understand the key factors involved in evaluating a business acquisition.
• Learn how to perform effective due diligence for business purchases.
• Identify the differences between purchasing shares versus assets.
• Gain insights into financing options and their impact on liquidity and solvency.
• Understand the legal and accounting requirements for completing a business acquisition.
Content
The webinar will cover the following topics:
• Valuation and Due Diligence
o Methods of valuation: Maintainable earnings, discounted cash flows, net assets value.
o Due diligence processes and common pitfalls.
• Companies Act and Compliance Issues
o Legal capacity and fiduciary responsibilities in acquiring a business.
o Shareholders’ rights and approval mechanisms.
• Financing the Transaction
o Cash, debt, or equity options.
o Impact on liquidity and solvency tests.
• Shares vs Net Assets
o Differences between buying shares or purchasing net assets.
o Accounting for the purchase: Fair value and consolidation.
• Legal Documentation and Contracts
o Key contractual elements: What is being bought and sold, and at what value.
o Mechanisms such as share buybacks and dividends in specie.
