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6 Things to Consider Before You Enter into a Merger or Acquisition

At Legal Blaze, we think it is a good idea to consider a few things when entering into a merger or acquisition. Below, you will find 6 guiding key points to think about while starting this process.

IT CAN TAKE A LONG TIME TO FINISH CLOSING.

Most mergers and acquisitions can take 4 – 6 months from creation through completion. This amount of time will depend on the desperation of the buyer to do the hard work and complete the transaction,

At Legal Blaze, we think it is a good idea to consider a few things when entering into a merger or acquisition. Below, you will find 6 guiding key points to think about while starting this process.

  1. It Can Take A Long Time To Finish Closing.

Most mergers and acquisitions can take 4 – 6 months from creation through completion. This amount of time will depend on the desperation of the buyer to do the hard work and complete the transaction,

  1. More Than One Bidder Will Get The Seller The Best Deal Possible.

When you want to get the best deal possible, It’s usually a good idea to get more than one bid. By comparing the different bids, sellers can usually end up getting a better deal all around and with a higher price.

  1. Find A Good M&A Corporate Lawyer OKC.

These kinds of transactions are extremely complex, have multifaceted agreements, as well as challenging legal issues. They are typically fast-paced and can potentially be overwhelming. That’s why you need a very qualified M&A Corporate Lawyer to be effective. They need to be very familiar with the structure and behind the scenes of the acquisition agreement, and also with the business realities of M&A deals. Being a highly skilled negotiator, advisor and draftsperson is also a plus.

  1. Don’t Let The ‘Letter Of Intent’ Trap You.

One of the biggest things the can slow you down in this process is to not properly negotiate the letter of intent. If you aren’t careful, the leverage can swing from the seller to the buyer without you even noticing it. You definitely want a skilled Corporate Lawyer OKC to sit in on the signing process to ensure that the seller is getting the best deal possible.

  1. Benefit and Employee Issues Are Important.

Employee and benefit issues will always show up, especially if you are dealing with a technology company. This is not foreign to a qualified Corporate Lawyer. These issues will always need to be addressed. A few of the questions that can arise in this kind of M&A transaction are:

  • How will outstanding stock be handled in allocating the M&A consideration?
  • Will the buyer need main employees to agree to “re-vest”?
  • What are some of the terms of new employment agreements to management of the seller?
  1. Negotiation Dynamics.

Comprise is going to happen in any kind of M&A negotiation. The trick is knowing who has the better leverage in these situations. It is never ever helpful for things to get heated or for arguments to get out of hand. A qualified Corporate Lawyer will know how to conduct these kinds of meetings with professionalism, kindness and courtesy.

We hope you have enjoyed these 6 key points for navigating your next merger or acquisition.

 

Written By

Matt has over 10 years of legal writing experience. He's worked and written for legal websites for serval websites including Truskett Law, Bruner Law, Jeffrey & Erwin, Gary Crews, PLLC., Deposition Academy, and Wagner & Lynch.

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