Management and Organizational Studies 2276A/B Lecture Notes - Lecture 4: Horizontal Integration

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2276A/B
• Professor: Frederick King

Document Summary

All business transactions start with two or more people coming together and agreeing on a deal/expressing some interest in doing a deal. Needs to have some sort of initial contact: can be formal (sellers can hire a broker, can be casual (discussions of a friendly nature) Two kinds of purchasers: strategic purchasers - someone who is buying a business because ti is return on their investment, not concerned with synergies or goals that complimentary to their business. Sets out basic terms of the deal (buyer will purchase this company, for this: pure financial play hedge fun, mutual fun, buyer seeks to earn a are complimentary with business" it owns. First step after initial discussion letter of intent: 13. Deposit we are giving vendor ,000 deposit so must outline: 15. Not legally bindings, with exception of paragraph 13, 14 15 which are intended to be legally binding - what is missing is intent: 14.