The comprehensive, practical guide to buying, selling, and merging technology companies The Technology M&A Guidebook provides executives and entrepreneurs interested in acquiring or selling a technology company with everything they need to know about the entire M&A process, from identifying target companies or buyers to financial analysis, due diligence, tax issues, valuation, and legal considerations. This book explores specific issues that are unique to technology M&A: assessing the impact of technology sector high-change rates; market-driven product development; company culture issues; engineers as managers and managers as engineers; consumer and technical product differences; technology marketing issues; intellectual property considerations; Internet interaction; and more. It also provides detailed analyses of factors involved in acquiring companies from different sectors, including: Semiconductor equipment and chip manufacturers PC/workstation and related hardware companies Software businesses Data networking and telecommunications firms Internet-related companies Don't enter the M&A process unprepared. Let The Technology M&A Guidebook help you beat the odds and make your sale or acquisition a complete success.
Preface
1 Stages of the M&A Process 1
2 Motivations for Buying or Selling a Business 16
3 Financial Statement Overview 51
4 Effectively Using Financial Ratios 68
5 Financial Analysis Concepts 85
6 Deal Types and Their Funding 108
7 Strategic Synergy and Transaction Structures 126
8 Special Accounting and Tax Considerations 150
9 Detailed Marketing and Sales Evaluation 173
10 Special Technology and Marketing Considerations 201
11 Semiconductor Equipment and Chip Manufacturers 226
12 Evaluating a PC/Workstation and Related Hardware Businesses 236
13 Software Businesses 246
14 Data Networking and Telecommunications Businesses 255
15 Internet-Related Businesses 272
16 Preparing to Buy and Sell 282
17 Franchised and Competitor Transactions 302
18 Performing Due Diligence 313
19 Determining the Right Price 337
20 Making the Buy/Sell Decision 359
21 Legal Considerations 372
22 After the Deal Closes 386
Bibliography 401
App Due Diligence Starting Checklist 405