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
"The discussions in the market revolve a lot around the synergies in the completion of operations", financial impacts, valuationand guarantees. They are notorious points in M&A operations, are the purpose of any negotiation, says Gustavo Michel Arbach, Specialist in Business and Corporate Law. However, Gustavo emphasizes that the legal aspect also carries significant weight in these processes. That's why, it is important to take some precautions and be legally prepared to ensure the success of operations
Next, Arbach highlights some tips for a merger and acquisition to have more security and efficiency
Count on experienced and trustworthy professionals
The success of an M&A directly depends on the quality of the advisory involved (mainly legal and financial). Having highly qualified and reliable professionals by your side, that focus exclusively on the best agreement and the protection of their interests, but never lose sight of the goal of doing business, it is essential to avoid risks and maximize gains
Design scenarios and always consider the worst case scenario.
During the M&A process, it is important to carry out detailed risk analyses and to plan different scenarios in a proactive manner. A lawyer should always plan for and anticipate the worst of them, because this approach allows to mitigate potential losses and avoid unpleasant surprises along the way
Attention to detail
The complexity of the processes involved in M&A requires professionals who are attentive and dedicated to the operation. Lack of attention and perfectionism can result in weak clauses, ambiguous and legally debatable. Even in contracts with many pages, all clauses must be complete and accurate and precisely reflect the parties' intent in the transaction.
Attention to Post-Closing and Integration
The closing of a deal is not the end of the process. The Post-Closing is an important phase that can directly impact the value of the transaction. Problems in the integration of companies, contractual failures and post-closing disputes can jeopardize the entire M&A effort. Always make sure that the entire process is meticulously designed.
Trade with those you trust
An M&A should not even begin if there is not at least minimal trust between the parties involved. More than a well-drafted contract and adue diligencewell 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 in a transparent and beneficial manner for all
"Following these guidelines may be the key to a successful M&A process", reducing risks and increasing the chances of a beneficial transaction for all parties, concluded Gustavo
