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Posts By: István Préda

István Préda , Managing Partner at MB Partners

István Préda founded MB Partners (IMAP Hungary) in 2002. Prior to that he was was director of corporate finance for ABN AMRO in Hungary. Between 1995 and 1997, Préda worked as project manager at the EBRD. Between 1991 and 1994, he was an auditor with KPMG in London.

Préda graduated from the College for Finance and Accounting in Budapest. He spent one year each in Greece and The Netherlands. In 1994, he qualified as aChartered Accountant (ACA) in England and in 1997 he earned his financial analyst (CFA) charter in Charlottesville, Virginia. Since 2002, Préda originated and led more than two dozen successful disposal, capital raising and valuation transactions.

Préda founded the CFA Society of Hungary (2000) and the M&A CEE Network (2003), the latter having merged into IMAP in 2005. Préda has been a board member of IMAP since 2007. He also founded the leading M&A newsletter in the CEE region, titled M&A Hungary, and publishes two blogs, the English language one being accessible at http://mahungary.wordpress.com.

M&A due diligence: when to negotiate warranties against potential blind spots

Jul 7, 2011 - by István Préda

Cat and mouse warranties
The extent and scope of warranties is one of the trickiest negotiation areas in selling or buying a private company. The buyer wants to make sure that the financial statements were true and fair and it had received all relevant information for his investment decision on closing, while the seller is afraid warranties will allow the buyer to claw back part of the purchase price after the deal. The most important areas to seek warranties are: the valuation of assets, off balance sheet items, related party transactions, pending litigations and potential tax liabilities.

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The top 5 greatest dangers facing buyers in an acquisition

Jun 1, 2011 - by István Préda

This month, we summarise the top five greatest dangers facing buyers in acquiring a company.

1) The seller leans back
Buyers try to bind sellers to the company post acquisition, but often the shareholders agreement negotiations become so complicated that sellers are eventually let off the hook for a discount in the acquisition price.

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