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Mergers and Acquisitions Financial Specialist

Real-Life Activities

Real-Life Communication

Negotiating a merger or acquisition requires a lot of things. First, there are the negotiations between buyer and seller. But there is also all the paperwork that goes with the deal, both financial and otherwise. And not all of that paperwork is related to financial statements.

To ensure that all of the bases are covered and everything is in order, there is a paper trail involved in a merger or acquisition. It consists of letters of intent, bid letters, negotiation letters and general communications about the merger or acquisition.

For you, the financial end of the merger or acquisition is the most exciting part. The paper trail is tedious and not something you care to do. However, you understand the importance of that documentation and you're meticulous about writing the letters and communications that are necessary to complete a deal.

In fact, you're so meticulous that, as is the case today, as soon as the need arises, you write the letter, memo or report and get it dispatched to all involved parties. Today, you're working with a company that is buying a competitor. And the seller has made a counter-offer.

The seller is offering a selling price that is $150,000 above $700,000, the price the buyer has said he's willing to pay. Furthermore, the seller wants assurances from the buyer that the employees of the business will be guaranteed their jobs for at least two years after the close of the deal, and all employees enrolled in benefit plans will not lose their benefits.

It's your job to ensure that the buyer is aware of these demands, and that the seller understands you have passed his demands on. You write a letter addressed to both parties that outlines the seller's counter-offer.

What might your letter look like? Remember to be professional and address the issue as succinctly as possible. Also remember that grammar, punctuation and spelling are all indicators of how professional you are.

"Writing is not one of my favorite activities," says Jean Hutcheson, a mergers and acquisitions financial specialist. "But it is a necessary part of this job, as it probably is with any profession. It's important to keep everyone involved updated on the progress of a sale."

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.