M&A Deals Require the Support of Multiple Teams
M&A could be the answer to your business’s needs should you need to speed up growth, or overcome a hurdle. However, M&A deals are not easy and require the involvement of multiple teams–from identifying strategic targets to post-acquisition integration.
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 essential to success.
M&A deals begin with deal origination, the process of identifying potential targets for acquisition that are based on clear factors such as strategic fit and financial performance. Private equity firms, investment banks and data room prices venture capitalists usually focus on this aspect of M&A. M&A lawyers, however, have to also look for opportunities in the market and reach agreements whether they’re negotiating a purchase or a rejection of an offer by a buyer.
The M&A team will be required to prepare the legal documentation needed for an investment transaction. This includes the preparation of an asset purchase contract as well as evaluating and assigning assets in determining warranties and representations and much more.
The M&A team must also determine the motive behind why the seller is selling the company. Certain motives could lead to antitrust regulations, like ones that safeguard the integrity of a market by preventing monopolies and market competition. In these cases the M&A team must prepare documents that meet antitrust regulations.
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