Aspect One: Business

1. Trends
2. Recent Studies
3. Stages
   1. Investigation
   2. Negotiation
   3. Integration
4. Team
   1. Internal
   2. External
5. Driving Factors and Targets
6. Structural Questions
7. Protecting Yourself
   1. Shareholders
   2. Board of Directors
8. Methods
   1. Asset Acquisition
   2. Stock Acquisition
   3. Merger
   4. Three Party or Triangular Mergers
      1. Forward Subsidiary Merger
      2. Reverse Subsidiary Merger
   5. Share Exchanges
   6. Short-Form Mergers
   7. Reverse
   8. Target Repurchase
   9. Consolidation
   10. Management Buy-Out
   11. Reorganization and Bankruptcy
   12. Exclusive Appointment
   13. Vendor Financing
   14. Joint Venture
   15. Choice of Method

Aspect Two: Legal

1. Successors
   1. General Liability
      1. Perfected Security Interests
      2. Assumption
      3. Consolidation, Merger, Continuation or Alter Ego
      4. Fraud
      5. Product Line
      6. Duty to Warn
      7. Avoiding and Protecting Against Liability
   2. Environment
   3. Sales Taxes
2. Employers
   1. Discrimination Claims
   2. Collective Bargaining Agreements
   3. State Protections
   4. Worker Adjustment and Retraining Notification (WARN) Act
   5. Pension Plans
   6. Unemployment Insurance and Taxes
3. Creditors
   1. Dividend Restrictions and Redemption
   2. Fraudulent Conveyance
   3. Bulk Sales
   4. Lender Liability
   5. Lease Terms
4. Shareholders
   1. Approval Required by Statute
   2. Approval Required by Stock Exchanges
   3. Approval of Parent Company
   4. Appraisal Rights
   5. Controlling Shareholders
      1. Selling Controlling Interest
      2. Acquiring Controlling Interest
5. Boards of Directors
   1. Tests
   2. Independent Directors
   3. Protection, Waiver and Insurance
   4. Liability to Acquirers
6. Other Parties
   1. Managers
   2. Investment Bankers
   3. ESOP Trustees
   4. Third Parties
7. Securities
   1. 1933 Securities Act
      1. Exemptions for Acquirers
      2. Filings by Acquirers
      3. Restrictions on Transfers by Targets
      4. Exemptions for Targets' Shareholders
   2. 1934 Securities Exchange Act
      1. Disclosure Obligations
      2. Timing of Disclosures
      3. Proxy Solicitations
      4. Short Swing Profits
   3. 1940 Investment Company Act
   4. State Securities Laws
      1. Exemptions for Acquirers
      2. Filings by Acquirers
      3. Exemptions for Targets' Shareholders
8. Anti-Takeover
   1. Williams Act
      1. Rules
      2. Disclosure Obligations
      3. Exclusions
   2. Federal Reserve Bank
   3. State Regulation
9. Antitrust
   1. Clayton Act
   2. Hart-Scott-Rodino
      1. Commerce Test
      2. Parties Test
      3. Transaction Test
      4. Exemptions
   3. Other Nations
10. Special Industries
    1. Regulated Industries
       1. Transportation
       2. Banking and Insurance
       3. Communications and Public Utilities
       4. Alcohol
    2. Foreign Investors
    3. National Security

Aspect Three: Finance

1. General
   1. Economic Role
   2. Management Role
   3. Cost
   4. Duration
   5. Risk and Security
2. Equity Financing
   1. Types of Securities
      1. Common Stock
      2. Preferred Stock
   2. Types of Rights
      1. Voting
      2. Dividend
      3. Participation
      4. Redemption
      5. Convertibility
   3. Specific Types of Securities
      1. Founders Stock
      2. Voting Common Stock
      3. Nonvoting Common Stock
      4. Multiple Classes of Voting Common Stock
      5. Nonvoting Noncumulative Preferred Stock
      6. Nonvoting Fully Cumulative Preferred Stock
      7. Nonvoting Partially Cumulative Preferred Stock
      8. Adjustable Rate Preferred Stock
      9. Voting Preferred Stock
      10. Convertible Preferred Stock
      11. Participating Preferred Stock
      12. Redeemable Preferred Stock
   4. Funding Sources
      1. Nonregistered Primary Offering
      2. Registered Primary Offering
3. Debt Financing
   1. Types of Debt
      1. Secured Debt - Bond
      2. Unsecured Debt - Debenture
   2. Types of Rights
      1. Repayment of Principal
      2. Interest Rate and Payment
      3. Optional Prepayment
      4. Security
      5. Subordination
      6. Conversion
      7. Affirmative and Negative Covenants
      8. Events of Default
   3. Specific Types of Debt
      1. Demand Note
      2. Unsecured Fixed Term Debenture
      3. Secured Fixed Term Debenture
      4. Real Estate Mortgage Bond
      5. Equipment Mortgage Bond
      6. Conditional Sale Bond
      7. Trust Certificate
      8. Collateral Trust Bond
      9. Guaranteed Bond
      10. Convertible Debt Financing Instrument
      11. Mezzanine Debt
   4. Funding Sources
      1. Internal Funds
      2. Vendor Financing
      3. Strategic Partner
      4. Private Loan
      5. Commercial Loan and Lease
4. Junk Bonds; High-Yield Bonds
5. Leveraged and Management Buy-Out
   1. Debt Portion
      1. Senior Debt
      2. Subordinated Debt
   2. Equity Portion
   3. Influences
   4. Case Studies

Aspect Four: Accounting

1. General
2. Purchase Method
   1. Requirements
      1. Acquirer
      2. Acquisition Cost
      3. Other Issues
   2. Recording
   3. Disclosures
   4. Tax Treatment
3. Pooling of Interests Method
   1. Requirements
   2. Recording
   3. Disclosures
   4. Tax Treatment
4. Acquisition of Stock Methods
   1. Requirements
   2. Recording
   3. Disclosures
5. Divestitures
   1. Requirements
   2. Recording
   3. Disclosures
6. Spin Offs
   1. Recording
   2. Disclosures

Aspect Five: Tax

1. Background
2. A Little Tax History
3. Pressure of Taxes on Acquisitions
   1. Buyer Who Wants Depreciation Deductions
   2. Buyer Who Wants to Tie Price to Target's Income
   3. Conflicted Sellers
   4. Estate Taxes
4. Reorganization
   1. Type A Reorganization
      1. Forward Subsidiary Merger
      2. Reverse Subsidiary Merger
   2. Type B Reorganization
   3. Type C Reorganization
   4. Type D Reorganization
   5. Type G Reorganization
   6. Treatment of Reorganization Parties
      1. Target
      2. Share and Security Holders of Target
      3. Acquirer
5. Taxable Reorganization
6. Section 351 as Acquisition Technique
7. Nonqualified Preferred Stock
8. Management Buy-Outs
9. Use of Debt in Acquisition
10. Acquisition Costs
    1. Acquirer
    2. Target
11. Net Operating Losses
    1. Obstacle One: Section 269
    2. Obstacle Two: Objective Limits Under Sections 382-4
    3. Business Continuity Requirement
    4. Built-In Gains and Losses
    5. Other Attributes
12. Taxable Acquisition
    1. Taxable Asset Acquisition
    2. Taxable Stock Acquisition
13. Election to Treat Sale of Stock as Sale of Assets
14. Pre-Acquisition Redemption and Dividend
15. Golden Parachute
16. Greenmail Payment
17. Poison Pill
18. Tax-Free Divestiture
    1. Types of Divestitures
    2. Requirements for Nontaxable Divestitures
       1. Control
       2. Minimum Distribution
       3. Business Purpose
       4. Not Device to Bail Out Profits
       5. Active Business Requirement
    3. Vertical Division
    4. Horizontal Division
19. Divestiture of Unwanted Assets Followed by Tax-Free Acquisition
20. Advance Ruling and Legal Opinion

Aspect Six: Process

1. Negotiations
2. Confidentiality Agreement
3. Letter of Intent/Term Sheet
   1. Contents
   2. Binding Nature
   3. Lock-up
   4. Remedies
      1. Breach
      2. Tortuous Interference
      3. Break-up Fees
   5. Disclosure Effect
4. Due Diligence
   1. Purpose
   2. Timing
      1. Confidentiality
      2. Antitrust
   3. Checklist
5. Main Agreement
   1. Deal Provisions
      1. Parties and Transaction
      2. Price and Payment
   2. Representations and Warranties
      1. Seller
      2. Buyer
      3. Future
   3. Covenants
   4. Conditions
   5. Indemnification
   6. Miscellaneous
      1. Choice of Law
      2. Dispute Settlement and Consent to Jurisdiction
      3. Fees
   7. Exhibits and Schedules
6. Approval
   1. Boards of Directors
   2. Stockholders
   3. Government
      1. Regulated Industries
      2. Antitrust
      3. Securities
   4. Third Party
7. Investment Banker Fees
8. Closing
   1. Timing
   2. Deliveries at Closing
      1. Transfer Documents
      2. Payment
      3. Certificates
      4. Legal Opinion
      5. Accountant Opinion
      6. Investment Banker Opinion
      7. Other Documents
      8. Press Release

Aspect Seven: Divestiture

1. Trends
2. Workout
   1. Stages
   2. Methods
   3. Securities Rules
3. Reorganization
   1. Stages
   2. Methods
   3. Securities Rules
   4. Disadvantages

Appendices

1. Forms (in PDF format)
   1. Confidentiality Agreement
   2. Letter of Intent/Term Sheet
   3. Due Diligence Checklist
   4. Asset Acquisition Agreement
   5. Board Approval
   6. Shareholder Approval
   7. Third Party Approval
2. Bibliography
   1. Federal Statutes
      1. Model Business Corporation Act
      2. Revised Model Business Corporation Act
      3. Uniform Commercial Code, Article 6
      4. Uniform Fraudulent Conveyance Act
      5. Uniform Fraudulent Transfer Act
      6. Uniform Securities Act
   2. State Statutes
      1. California Corporations Code
      2. Delaware General Corporation Law
      3. Indiana Control Share Acquisitions Act
   3. Accounting Opinions and Statements
      1. APB Opinion No. 16
      2. APB Opinion No. 18
      3. APB Opinion No. 30
      4. FASB SAFS No. 94
      5. FASB SAFS No. 96
      6. FASB SAFS No. 109
      7. FASB SAFS No. 121
      8. FASB SAFS No. 141
      9. FASB SAFS No. 142
      10. FASB SAFS No. 144