A deal structure is a set of conditions. These conditions depend not only on the parties to the transaction, but also on external conditions (e.g. tax or legal) . In order for the transaction to be carried out efficiently, you should be familiar with applicable tax and civil law.
Types of transaction
- one-sided transaction
- multi-sided transaction
- commercial transaction
The commercial transaction is an interaction between a buyer and a seller. It involves the exchange between an enterprise and a second enterprise or a people. It is an exchange of products, services, money and information. Transaction parties can negotiate individual transaction terms. This is not only the amount of payment, but also the method and date of payment .
Transaction structure for mergers and acquisitions
Enterprises operate in various areas that do not compete with each other. If one of these areas becomes less profitable, you can always develop the other. This is a very good solution if the company is very keen on any changes in its environment - near or far. One of the methods of enterprise development is the acquisition or merger with another company with a similar profile of activity. Enterprise development is a long-term process, but through mergers and acquisitions it can take place much faster and enables the company to start new investments, which in the future can bring a large profit. Thanks to the "merger", the company will not only gain the assets of the other party, but also gain the area of activity, and thus customers.
In order for such transactions to comply with all regulations, the "deal structure" must be established. A sales schedule should be developed and financial and economic analysis carried out. Negotiations are an important step in creating the structure. Enterprises can carry out mergers or acquisitions to form their own teams or hire specialists to take care of the entire procedure.
A banking transaction is a set of operations that is commonly called a bank transfer. Thanks to this action, we can quickly make payment of obligations or receive our debts throughout the country and around the world. For a transaction to be considered successful, money must be taken from one account and posted to another.
Stages of a banking transaction:
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- P.A. Bernstein, E.Newcomer. 2009. p.1-2
- G.Yates, M.Hinchliffe. 2010. p.47-49
- R.Wanhhofer. 2014. p.68-70
- Bernstein P.A., Newcomer E. (2009)., Principles of transaction processing, Morgan Kaufmann.
- Bullen A. (2011)., Arm’s length transaction structures, IBFD.
- Wandhofer R. (2014).,Transaction banking and the impact of regulatory change.
- Yates G., Hinchliffe M. (2010).,A practical guide to private equity transactions, Cambridge.
Author: Klaudia Broś