If your business needs to boost growth or overcome a competitive obstacle, M&A may be the solution. M&A is a lengthy process that requires the cooperation of multiple teams, from choosing strategic targets, to integration after acquisition.
A M&A transaction could involve a variety of types of transactions like mergers purchase and divestitures. Whether your firm is involved in buy-side or sell-side M&A an efficient approach to each phase of the M&A process is crucial for success.
Deal origination is the process of identifying targets that need to be acquired based upon clear factors such as strategic fit and financial performance. Private equity firms, investment banks and venture capitalists typically focus on this aspect of M&A. M&A lawyers, however, have to also look for opportunities in the market and negotiate agreements–whether they’re negotiating a purchase, or a denial of an offer by a buyer.
In the event of a stock acquisition, the M&A team must draft legal documentation around the transaction. This includes creating an asset purchase agreement in addition https://connectingfamiliesgadsden.com/operational-due-diligence-checklist-for-private-equity/ to evaluating and assigning assets as well as determining representations and warranties and more.
The M&A team must also assess the reason behind selling the business. Certain circumstances could lead to antitrust regulations, like those that safeguard the integrity of markets by preventing monopolies from forming and limiting market competition. In these instances, M&A teams must prepare documents that meet antitrust requirements.