M&A Activity -- Expect a Surge in Mergers

The buyer will also perform this analysis and it is rare that a buyer's conclusion equals that of the seller; hence a negotiation will be necessary. Frequently, the buyer will agree to pay the seller for the Adjusted Book Value at closing and then a royalty on actual collected sales over a period of time. These royalty rates range from 3-10 percent, for terms of three to five years.