If your business is seeking to increase its growth or overcome a competitive obstacle, M&A may be the solution. But M&A deals are complex and require the cooperation of multiple teams, from identifying strategic targets to integrating the acquisition post-acquisition.
A M&A transaction could involve a variety of kinds of transactions such as mergers, purchases and divestitures. If your business is involved in buy-side M&A or sell-side M&A an effective approach to each phase is vital to achieving success.
M&A deals begin by originating the deal, a process of identifying potential acquisition targets according to clearly defined criteria like strategic fit and financial performance. Private equity companies, investment banks and venture capitalists are typically focused on this aspect of M&A. M&A lawyers, however, have to also look for opportunities in the market and negotiate agreements – whether https://connectingfamiliesgadsden.com/operational-due-diligence-checklist-for-private-equity/ they’re negotiating for a purchase or a refusal of a buyer’s overture.
In the event of a stock acquisition, the M&A team must draft legal documents for the transaction. This includes the creation of an asset purchase agreement as well as evaluating and assigning assets in determining warranties and representations and more.
The M&A team should also consider the reason the seller is selling the company. Certain reasons could trigger antitrust regulations such as ones that safeguard the integrity of markets by preventing monopolies and competition. In these instances, the M&A team must prepare documents that satisfy antitrust requirements.