The One Question to Ask in M&A Transactions
- By : Wong Mei Ying
- Category : Linkedin Post, Mergers and Acquisitions
When discussing M&A deals with clients who are seeking to undertake acquisitions, I always ask this question:
𝘞𝘩𝘺 𝘥𝘰 𝘺𝘰𝘶 𝘸𝘢𝘯𝘵 𝘵𝘰 𝘢𝘤𝘲𝘶𝘪𝘳𝘦 𝘵𝘩𝘪𝘴 𝘤𝘰𝘮𝘱𝘢𝘯𝘺?
Understanding the underlying motivation behind our clients’ decision for their acquisitions helps us to achieve the following:
– We direct our focus to what matters most to the clients during the legal due diligence exercise.
– We tailor the representations and warranties in the transaction agreements to address the clients’ concerns.
– We balance potential risks against anticipated benefits of the acquisitions to provide recommendations that best fit the clients’ requirements.
Though not always expressly stated in sale and purchase agreements, the reasons for acquisitions significantly shape the negotiation and drafting of the agreements.
This post first appeared on LinkedIn on 17 August 2023.
