In the dynamic world of business, mergers and acquisitions (M&A) can be a good strategy for company expansion and asset liquidation. For an M&A to be successful, beyond economic issues, it is necessary to consider various legal aspects that can directly impact the outcome of the operation.
“Market discussions often revolve around synergies in closing deals, financial impacts, valuation and guarantees. These are notorious points in M&A operations, they are the purpose of any negotiation,” says Gustavo Michel Arbach, Specialist in Corporate and Business Law. However, Gustavo emphasizes that the legal aspect also carries significant weight in these processes. Therefore, it is important to take certain precautions and be legally prepared to ensure the success of the operations.
Below, Arbach highlights some tips for a more secure and efficient M&A:
Rely on experienced and trustworthy professionals
The success of an M&A directly depends on the quality of the advisory involved (primarily legal and financial). Having highly qualified and reliable professionals by your side, who focus exclusively on the best deal and protecting your interests, but never lose sight of the goal of doing business, is essential to avoid risks and maximize gains.
Project scenarios and always consider the worst one
During the M&A process, it is important to conduct detailed risk analyses and plan different scenarios proactively. A lawyer should always project and anticipate the worst one, as this approach helps mitigate potential losses and avoid unpleasant surprises along the way.
Attention to detail
The complexity of the procedures involved in M&A requires attentive and dedicated professionals. Lack of attention and perfectionism can result in fragile, ambiguous, and legally questionable clauses. Even in contracts with many pages, all clauses should be complete and precise, accurately reflecting the parties’ intentions in the deal.
Attention to Post-Closing and integration
Closing a deal is not the end of the process. Post-Closing is an important phase that can directly impact the transaction’s value. Problems in company integration, contractual failures, and post-closing disputes can compromise the entire M&A effort. Always ensure that the entire process is meticulously designed.
Negotiate with those you trust
An M&A should not even begin if there is not minimal trust between the involved parties. More than a well-drafted contract and a due diligence properly conducted, it is a premise that all parties involved have synergies and credibility. This is the best antidote against litigation and increases the chances that the agreed terms will be fulfilled transparently and beneficially for all.
“Following these guidelines can be the key to a successful M&A process, reducing risks and increasing the chances of a beneficial transaction for all parties,” concludes Gustavo.
