dealmaking

Dealmaking is the activity of negotiating, structuring, and closing agreements that reallocate ownership, capital, or rights between parties to create value. It occurs in corporate finance, entrepreneurship, real estate, and commercial sectors, and involves buyers, sellers, investors, and strategic partners.

Common deal forms include mergers and acquisitions, minority or majority investments, licensing agreements, joint ventures, strategic alliances, asset or business sales, and complex financing arrangements. The choice of form reflects objectives such as growth, risk sharing, cash flow, or access to technology.

Typical dealmaking process: sourcing opportunities; initial evaluation and screening; due diligence; term sheet or letter of intent; detailed negotiations; signing and closing; and, in some cases, post-deal integration or governance arrangements. Timelines vary by complexity and regulatory requirements.

Participants include investment bankers, corporate development teams, lawyers, accountants, and external advisors. Common tools and concepts include valuation methods (discounted cash flow, multiples, precedent transactions), term sheets, representations and warranties, covenants, earnouts, and break-up fees.

Key considerations are strategic fit, valuation and financing, risk allocation, regulatory or antitrust clearance, cultural alignment, and integration challenges. Ethical duties, fiduciary obligations, and conflicts of interest shape how deals are pursued and disclosed.

A successful deal typically creates value through synergies, improved market position, or access to capital, and is judged by realized performance, retention of key personnel, and the efficiency of integration.