At ZP we have a growth mentality and so mergers with strategically aligned companies are of interest to us:
Some principles in a merger with ZP includes:
1) An agreement that the merger is motivated to bring growth both in ZP and also in the company merging into ZP.
2) The merging company will be independently valued by an accounting company such as RSM Global.
3) ZP will also be independently valued by RSM.
4) The company merging into ZP will be offered shares equivalent to their relative valuation to ZP.
5) It is assumed that the merging company in the first instance will retain it's management team, and that the first efforts will be on a merger of sales and marketing.
6) In the case of merging company where a founder from the merging company wishes to take an exit or have an exit in a certain amount of time exit then a mixture of cash and shares can be considered,