M&A can be the solution to your business’s needs when you want to accelerate growth, or overcome a challenge. M&A is a complicated procedure which requires the assistance of several teams, from identifying strategic targets through to post-acquisition integration.
A M&A deal can comprise one of several types of transactions, such as mergers as well as divestitures, acquisitions and mergers. Whether your firm is involved in sell-side or buy-side M&A the right approach to each step of the M&A process is essential for success.
M&A deals begin with deal initiation, the process of identifying potential acquisition targets based on clearly defined requirements such as strategic fit or financial performance. Private equity firms, investment banks and venture capitalists generally focus on this aspect of M&A. M&A lawyers, however, must also identify opportunities in the market and reach agreements whether they’re negotiating a purchase, or a denial of a buyer’s overture.
In a stock purchase, the M&A team is required to prepare legal documentation around the transaction. This includes the creation of an asset purchase agreement, evaluating and assigning assets as well as determining representations and warranties and much more.
The M&A team should also determine the reasons why the seller is selling the business. Certain motives could cause antitrust laws to be enforced for example, those that protect the integrity and competitiveness of the market. In these cases, M&A teams must prepare documents that comply with antitrust regulations.
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