If you own a business that is interested in merging with or acquiring another business, it’s not enough in today’s environment for you and another business owner to discuss the deal and shake on it. There is always a great deal of risk going into a business merger or purchase.
As such, it’s not something that business owners or C-suites should handle on their own. It’s imperative to have the expertise, skills, and knowledge of an experienced business attorney when exploring and executing an M&A transaction. Your deal is much more likely to be successful and beneficial with an attorney by your side.
Why You Need an M&A Attorney
An M&A lawyer can be an invaluable member of your team during this process from start to finish. For example, an M&A attorney can:
Ensure you have all the necessary corporate documents at every stage of the deal
Help you understand your options throughout the transaction
Serve as a central point of contact between all parties
Provide the parties with important updates
Alert you to any red flags
Attorneys are skilled negotiators who can help you reach a fair deal benefiting all involved parties while helping you achieve the best deal possible. It’s their job to ensure everyone is satisfied with the final agreement. Whether you are in the process of an M&A or are considering selling your company, now is the time to hire a qualified business attorney who can help.
What M&A Lawyers Do
The primary parties to M&A transactions each hire their own attorneys. These M&A lawyers provide several services to their clients, including the following:
Advising on the transaction’s structure and timing
Performing or helping with legal due diligence— including tasks such as reviewing contracts, permits, organizational documents, and other target company materials to increase their understanding of the scope, value, and risks of the proposed transaction
Providing advice regarding fiduciary duties and minority stockholder rights
Identifying legal issues that may arise during the merger or acquisition
Determining tax implications and changes in tax status for future filings
Offering tactical advice throughout negotiations
Negotiating and drafting transaction documents
Working with specialist attorneys as necessary
Meeting with client non-legal due diligence personnel to find and address client priorities and areas of risk
Managing and steering the transaction process with the goal of getting the deal to closing—this includes obtaining third-party consents, making regulatory filings, and coordinating with accountants, financial advisers, and proxy solicitors
Serving as the hub of an ongoing M&A transaction by functioning as the primary contact for most of the other deal participants
Whether selling a business to another entity or acquiring another one, you need a merger and acquisitions lawyer. They will focus on moving the transaction from the initial stages of interest to closing. However, it’s essential to note that the specific actions they take will depend on several different factors, including whether you are the buyer or seller, the size of the businesses involved, or whether two companies are merging into a new entity.
The Benefits of Hiring an M&A Attorney
The benefits of hiring an M&A attorney are countless. Making such an investment can provide you with the necessary peace of mind and confidence to pursue an M&A transaction and increase the chances that it will be successful.
Negotiation Skills
M&A lawyers are seasoned in the art of business negotiations. They have a deep understanding of what each party has to offer and what they want to accomplish. Their negotiation skills can help the parties reach deals that are beneficial and reach them faster. The sooner a deal can be closed, the more likely it is to be successful, and the sooner the parties can experience the benefits of the transaction.
Understanding Legal and Financial Risks
Business attorneys uniquely understand the legal and financial risks involved in M&A transactions. Unfortunately, what you don’t know in these deals can hurt you and your business. Your lawyer can help you understand the risks involved in an agreement from several different angles, which will help you make the best business decisions. For instance, they know what to look for when completing due diligence and various tax implications.
Keeping the Ball Rolling
Another benefit of hiring a business lawyer for your M&A deal is that they can keep the ball rolling. Sometimes these transactions get too bogged down in details, the involved parties get busy with other issues, and negotiations can stall. The longer the deal takes, the more likely it won’t come to fruition. An M&A attorney knows each step of the transaction and what needs to happen next. They can keep the ball rolling so that you don’t waste time or lose more money on the deal in the M&A process.
Time Savings
If you’re like most business owners or executives, you have a busy schedule. Taking the time to handle an M&A transaction on your own can be quite a heavy burden and even cause your business to suffer. Many essential tasks must be completed within the process of a deal, including documentation and research. Enlisting the help of an attorney to handle the details of your M&A transaction can save you a lot of time and stress.
Are You Considering an M&A Transaction? Call Ball & Barry Law Today
At Ball & Barry Law, we assist our clients through the mergers and acquisitions process from beginning to end. If you are pursuing the purchase or sale of a business, it’s crucial to understand that not all companies or M&A transactions are the same; every deal is unique. We know there is no cookie-cutter approach to M&A deals, and we tailor our legal services to your individual needs.
Both buyers and sellers should hire an M&A attorney to help analyze the risks, liabilities, and potential future pitfalls of buying and selling or merging two businesses. A successful transaction begins with proper legal counsel. Contact us today at (720) 439-2530 or online, and let us help you navigate the complex legal ins and outs of your M&A transaction.