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."