In many M&A agreements, the “liquidated damages provision” is employed to create a sort of insurance for both parties involved. With this provision, a specific sum is agreed upon and then imparted to an injured party should the other party breach an obligation listed in the contract.

It is estimated that the private equity industry currently retains over $1 trillion in dry powder capital as of the end of 2013. Compared to the data before the Recession hit in 2008, this is a massive spike. Only slightly over $1 billion worth of dry powder existed worldwide in 2008.

When buying a business, it is important to put together a team of professionals to assist in completing the M&A process. This group of experts should include an M&A intermediary, a lawyer, and an accountant. These individuals will help the buyer with the more technical aspects of the deal, and will protect them from legalities and financial mishaps.