Question

If you are planning an acquisition that is motivated by trying to acquire expertise, you are basically seeking to gain intellectual capital. What concerns would you have in structuring the deal and the post-merger integration that would be different from the concerns you would have when buying physical capital?

Answer 1

i would suggest that when anyone try to make deal to acquire expertise more empahsis should be given to compensate the purchase consideration by giving it own shares to such experts. that way those experts will have a feeling of ownership in the aquiring company.

After merger also, if some of those experts are taken on the management committees and on BOD's then they will tend to give their best for the company.

Moreover it is very difficult to value these experts in terms of monetary terms but whatever value is ascertained compansation should be maximum through shares of the aquiring company.