Analysis
Negotiation and settlement
We represent the client in negotiations on the final structure and purchase price and the conditions of the final transaction documentation.
The preparation of the wording of the Sale & Purchase agreement represents the final and crucial phase of the screening and negotiations of the participating parties. In addition to the mechanism for paying the purchase price, the contract also captures the related key financial and commercial conditions, the conclusions of the due diligence and further describes the rights and obligations of the buyer and seller and sets out any penalties for non-compliance.
Browse the documents you'll need
Term Sheet - Agreement on the basic parameters of a transaction (Sample)
Did you know the following about M&A transactions in the Czech Republic:
- The payout mechanism in the form of "closing accounts" dominates over the setting in the form of "locked box"
- Roughly half of the transactions were settled on the "closing" date, the remaining half included the settlement element through a deferred purchase price or the so-called "earn-out"
- In more than 70% of them, possible future risks were reflected in the form of the so-called "indemnity"
- Over 75% of transaction, where neither a sell-side nor a buy-side advisor was appointed, were not successfully finalized.
