M&A could be the answer for your organization should you need to speed up growth, or overcome a problem. However, M&A deals are complex and require the support of various teams ranging from identifying strategic goals to integrating the acquisition post-acquisition.
A M&A deal can involve many types of transactions like mergers purchase and divestitures. If your company is involved with buy-side M&A or sell-side M&A a quality approach to each phase is vital to success.
Deal origination is the process of identifying targets that need to be acquired based on clear criteria such as financial performance and strategic fit. Private equity firms, investment banks, and venture capitalists typically 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 rejection of an offer to buy.
The M&A team will need to prepare the legal documentation needed for the stock transaction. This includes creating a contract for the purchase of stock, evaluating assets and assigning them to the appropriate person, determining warranties and representations as well as other.
The M&A team must also determine the motive behind why the seller is selling the company. Some reasons may cause antitrust regulations to be enforced, such as ones https://connectingfamiliesgadsden.com/operational-due-diligence-checklist-for-private-equity/ that safeguard the integrity of markets by preventing monopolies from forming and limiting market competition. In these situations, M&A teams must prepare documents that meet antitrust requirements.
