Mergers and acquisitions can be game-changing for businesses. They require a lot of planning and research. Having an M&A lawyer to guide you through the process is essential.
Many attorneys in this practice area say that finding ways to make deals more beneficial for their clients is one of the things they love about the job. Here’s how they do it:
Preparation
M&A lawyers help businesses prepare for acquisitions or mergers by helping clients gather and organize data. They also assist with contract drafting and ensuring compliance with various regulations, such as securities laws.
M&A attorneys have a unique perspective on the transaction and can provide insight into risks, such as the preferred structure of the deal or tax impacts. They help clients understand a deal’s complexities and support them during an overwhelming process.
Choosing an M&A lawyer Denver that you like and trust is essential. The attorney you work with is essential to the process and will directly impact your transaction’s outcome. You can assess your lawyer’s personality and style by meeting with them several times and engaging in a more casual setting, such as grabbing drinks. It is recommended to choose a lawyer who has experience working with companies similar to your own.
Negotiation
M&A lawyers can help their clients navigate the many legal aspects of a transaction. They’ll devise strategies based on the client’s objectives and build a roadmap with a completion timeline. They’ll also identify any legal issues that need to be addressed and determine whether a deal requires special financing or needs to be structured differently.
They’ll review a prospective buyer’s financial performance, operations, past law compliance, contracts, etc. They’ll even check if the company has any outstanding debts.
This busy and time-consuming process often involves multiple meetings, negotiations, and drafts. And it’s an integral part of a business’s M&A strategy that can ultimately impact its future success. That’s why a seasoned attorney is essential. The right one is a “deal maker, not a deal breaker.” They understand the pitfalls and know how to keep a transaction moving forward. And they’ll protect their client against any unforeseen risks that might arise once the deal is closed.
Due Diligence
Lawyers help ensure a deal goes smoothly by addressing all relevant legal issues. This involves conducting thorough due diligence, which can include examining the company’s financial statements, reviewing the structure of the company, and assessing potential regulatory or compliance issues that could impact the deal.
Attorneys also help the closing process by preparing ancillary documents, including employment agreements, non-competition agreements, and transition services agreements. They may also help clients arrange financing and advise on the transaction structure that aligns with their goals.
M&A lawyers can often work long hours and experience high-stress levels, especially as they navigate the final phases of a deal. However, many M&A lawyers like the challenge of overcoming last-minute hurdles and feel that the high level of responsibility is satisfying. They may also enjoy the fast pace of M&A transactions. M&A is a gratifying career for those with the right skill set and drive.
Closing
When two companies combine, a lot must happen to make it a reality. Lawyers play a role in everything from setting up a non-disclosure agreement and letter of intent to negotiating and preparing final contracts that dictate the terms of the transaction.
They also handle licensing and regulatory issues, employment matters, tax liabilities, and other concerns. Depending on the size of the deal, it may be necessary to arrange financing as well. This may involve obtaining loans or bringing in new investors.
Attorneys often work long hours during the closing process as they focus on addressing open issues and last-minute hiccups to ensure that a deal goes through without delay. It can be months before two companies are turned into a single entity, but a lawyer helps to speed things up as much as possible. Almost every attorney in this field will have an anecdote about breaking plans with family and friends to meet deadlines.
