Pros & Gains of P.I.P.E Transactions
1. A large lot or a quantum of shares can be sold to well-informed investors on a long term, ensuring the company to meet its funding needs. 2. PIPE shares do not need registration with the Stock Exchange, transactions are handled with fewer administrative requirements than secondary offerings.
3. The investment is made upon a predetermined fixed price therefore it overrules the threat of under subscription.
4. No fresh Public issue is required for any PIPE deal. Newly issued shares are also sold at a predetermined price or debt which can be converted later on in to shares to an investor.
5. The PIPE process is simple, enjoys speedy Due Diligence as the company is already listed in the Stock Exchange and that saves time and becomes more economical.
6. PIPE claims superiority over the secondary offerings it does not have to issue any fresh public issue …show more content…
That normally the entire process is completed in three to six months. As no two acquisitions or Mergers are the same therefore the due diligence varies from one to another.
Pros & Gains of Due Diligence
1. It helps to bring out the risks and opportunities that are embedded in the transaction.
2. It reduces the risk of unpleasant post deal disclosure and shocks.
3. It corroborates with the fabric of facts, that were projected and complied with the assessment .
4. The process of due diligence helps build up the newly created relationship between two unrelated entity.
5. It helps gain all the information that is necessary for effective running the Merged or acquired company.
6. Thorough analysis also helps studying the factors and policies that were not good for the target company , so that they can be avoided and not repeated again.
7. Due Diligence helps analyzing the goal even before the company
1. A large lot or a quantum of shares can be sold to well-informed investors on a long term, ensuring the company to meet its funding needs. 2. PIPE shares do not need registration with the Stock Exchange, transactions are handled with fewer administrative requirements than secondary offerings.
3. The investment is made upon a predetermined fixed price therefore it overrules the threat of under subscription.
4. No fresh Public issue is required for any PIPE deal. Newly issued shares are also sold at a predetermined price or debt which can be converted later on in to shares to an investor.
5. The PIPE process is simple, enjoys speedy Due Diligence as the company is already listed in the Stock Exchange and that saves time and becomes more economical.
6. PIPE claims superiority over the secondary offerings it does not have to issue any fresh public issue …show more content…
That normally the entire process is completed in three to six months. As no two acquisitions or Mergers are the same therefore the due diligence varies from one to another.
Pros & Gains of Due Diligence
1. It helps to bring out the risks and opportunities that are embedded in the transaction.
2. It reduces the risk of unpleasant post deal disclosure and shocks.
3. It corroborates with the fabric of facts, that were projected and complied with the assessment .
4. The process of due diligence helps build up the newly created relationship between two unrelated entity.
5. It helps gain all the information that is necessary for effective running the Merged or acquired company.
6. Thorough analysis also helps studying the factors and policies that were not good for the target company , so that they can be avoided and not repeated again.
7. Due Diligence helps analyzing the goal even before the company