M&A can be the solution for your organization should you need to speed up growth, or overcome a challenge. However, M&A deals are not easy and require support from several teams, from identifying strategic targets to post-acquisition integration.
A M&A deal could comprise one of many types of transactions, such as mergers acquisitions, divestitures and mergers. If your company is involved with buy-side M&A or sell-side M&A a quality approach to each phase is crucial to success.
Deal origination is the method of identifying the targets to be acquired based on specific criteria like financial performance and strategic fit. Private equity firms, investment banks, and venture capitalists usually focus on this aspect of M&A. M&A lawyers, however, must also identify opportunities in the market and negotiate agreements – whether they are negotiating a purchase or rejecting an offer by a buyer.
The M&A team must create the legal documents required for a stock transaction. This includes the preparation of an asset purchase contract that evaluates and assigns assets, determining representations and warranties and much more.
The M&A team should also consider the reason the seller is selling the company. Certain motives can trigger antitrust regulations, such as those which protect the integrity and competitiveness of a market. In these instances, M&A teams must prepare documents that meet antitrust standards.
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