How long does it take to complete M&A transactions?

Linkedin Post

Clients always ask how long it would take to conduct legal due diligence, draft transaction agreements and complete the proposed acquisitions.

The answer is “it depends”.

The timeline depends on:

– clients to provide the commercial terms they want and their comments to draft agreements;

– target companies to provide the documents and information required for legal due diligence;

– us (lawyers) to do our work;

– the negotiation with the counterparties;

– comments from the counterparties and their counsels on the draft agreements;

-time required for the sellers and purchasers to fulfil the conditions precedent for the transactions including obtaining the necessary approval from regulators and other third parties.

The above should be taken into account when preparing timeline for M&A transactions.

#malaysiancorporatelawyer
#mergersandacquisitions

This post was first posted on Linkedin on 29 September 2022.

Linkedin Post
Earn-Out: A Postponed Dispute?

An earn-out is often the solution when a buyer and seller cannot agree on price. The seller believes the business is worth more than what the buyer is willing to pay upfront. So, the parties resolve the issue by deferring the portion of the price they cannot agree on, with …

Linkedin Post
The Disclosure Letter: Why Founders Selling Their Companies Should Not Treat It as an Afterthought

When founders sell their companies, the scope of legal work usually focuses on the share sale and purchase agreement (SPA). The disclosure letter is sometimes treated as secondary to the SPA but it should not have been the case. The disclosure letter sets out the exceptions to the sellers’ representations …

Linkedin Post
Third-Party Consents in a Share Sale: What Sellers Should Check Before Negotiating

When a company is sold, due diligence is usually conducted by the buyer, not the seller. That means the consents required from regulators, other shareholders, financiers or IP licensors to complete the sale are often only discovered when the buyer’s lawyers identify them during legal due diligence. By then, the …