David W. Hammer has significant experience in domestic and international mergers, acquisitions and divestitures across multiple industry lines. The businesses he has advised have included computer software, consumer electronics, medical technology, personnel/staffing, insurance, architectural, engineering, restaurant, plastics fabrication, machine tool manufacturing, cable television and pharmaceutical companies.
Most of Firmex’s clients are now using the internet to distribute seller’s books or confidential information memorandums when managing a sell-side M&A transaction. However, there are firms that are continuing to create physical books, which can range from 50 to 200 pages. These books are typically distributed to a large number of potential buyers, particularly if an advisory firm routinely markets transactions to a database of private equity firms.
The recent advent of the kindle, the iPad and other paper eliminating devices serves as an interesting marker of just how archaic a practice it is to produce physical books for an industry as fast paced as M&A. Producing that many physical books is outdated, expensive and time consuming.
The cost (not to mention the carbon footprint expenditure) to produce, print, bind and ship one book can be upwards of $100 and can take anywhere from 24 to 48 hours to reach its destination. If you are marketing a transaction to 40 potential buyers with a seller who wants to close quickly, this lag time can significantly affect profit on the transaction (or the seller’s cost) and the transaction timeline.
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