O’Brien also discusses the requirements for audited financial statements, as well as other factors which can impact the timing and closing of the transaction such as board or shareholder approvals, post-closure requirements, “go shop” provisions, and termination fees – as they relate to both strategic and financial acquisitions.

As O’Brien points out, “while public deals tend to be focused on certainty of closing, in addition to value obviously, the seller wants to maintain the flexibility to accept a better deal if it comes along — and the way of doing that tends to differ between strategic deals, i.e. when the buyer is another company, and as opposed to when the buyer is a private equity firm.” As it relates to regulatory issues, which are usually anti-trust related, O’Brien adds that frequently the buyer will agree to pay a reverse termination fee if the regulatory clearances aren’t obtained.

In terms of what lies ahead, O’Brien believes the negotiating leverage may sort of swing back to the seller a little bit.  “You could say that it’s sort of been a buyer’s market for the last couple of years and I think that may change.”