DiscoverDealmaking with Laura DiFrancesco15. Put Options in M&A: Crafting Fair and Effective Exit Strategies
15. Put Options in M&A: Crafting Fair and Effective Exit Strategies

15. Put Options in M&A: Crafting Fair and Effective Exit Strategies

Update: 2025-01-28
Share

Description

Welcome back to the Dealmaking with Laura DiFrancesco podcast! In this episode, Laura dives into the mechanics and strategic value of put options within mergers and acquisitions. She explores how put options provide investors with liquidity and exit certainty while offering operators opportunities to regain control and simplify ownership structures. Drawing on her extensive experience, Laura breaks down the nuances of structuring and negotiating put options, including valuation methods, payment terms, and triggers, ensuring fairness for all parties. The episode highlights the growing relevance of put options in Entrepreneurship Through Acquisition (ETA) and underscores the importance of comprehensive exit planning in navigating the complexities of M&A.


What You’ll Learn


The Basics of Put Options


// Discover how put options work and their critical role in creating flexible exit strategies within M&A transactions.


Investor Perspectives in Deal Structuring


// Understand what drives investor decision-making, from liquidity needs to portfolio planning and risk management.


Valuation Techniques for Put Options


// Explore the methods used to calculate valuation in put option agreements, including fixed prices, formulas, and appraisals.


Entrepreneurship Through Acquisition (ETA)


// Discover how entrepreneurs can leverage put options as a tool for successful small business acquisitions.


Key Considerations in Deal Structuring


// Learn how to structure deals with fairness and clarity, ensuring long-term success for all parties involved.


Episode Highlights:


[00:00 ] Welcome to DWLD


[01:16 ] Introduction to Put Options in M&A 


[03:43 ] Understanding the Mechanics of Put Options


[08:00 ] Typical Structure of Put Options


[10:16 ] Dean Street Law Ad


[11:18 ] Evaluation of Payment 


[15:46 ] Investor Perspectives on Put Options


[16:43 ] Acquisition Insights Ad


[17:41 ] What is an Investor Thinking?


[21:53 ] Outro


Resources Mentioned



Connect with Us



Our Sister Brands



Don't miss an episode of "Dealmaking with Laura DiFrancesco." Follow me on your favorite podcast platform and visit deanstreelaw.com to schedule a consultation today. Whether you're a seasoned entrepreneur or stepping into the world of mergers and acquisitions for the first time, let us guide you to success. 


Follow, rate, and review to help us reach more aspiring dealmakers like you!


Credits


Host // Laura DiFrancesco


Executive Producer // Teagan Rowland 


Editor // Ariel Yu and Teagan Rowland


Associate Producer // Ariel Yu


#putoptions #evaluation #payment #M&A  #dealmaking #corporatelaw #lawyer #mergersandacquisition #mergers #acquisition #acquisitioninsights #buisness #deanstreetlaw #corporateattorney #billion #billiondollardeals #billiondollars #finance #realestate #M&A #duediligence #contracts #NDAs #antitrustlaws #codeofconduct #regulatorycompliance 

Comments 
00:00
00:00
x

0.5x

0.8x

1.0x

1.25x

1.5x

2.0x

3.0x

Sleep Timer

Off

End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

15. Put Options in M&A: Crafting Fair and Effective Exit Strategies

15. Put Options in M&A: Crafting Fair and Effective Exit Strategies

Laura DiFrancesco