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:
๐๐ฉ๐บ ๐ฅ๐ฐ ๐บ๐ฐ๐ถ ๐ธ๐ข๐ฏ๐ต ๐ต๐ฐ ๐ข๐ค๐ฒ๐ถ๐ช๐ณ๐ฆ ๐ต๐ฉ๐ช๐ด ๐ค๐ฐ๐ฎ๐ฑ๐ข๐ฏ๐บ?
Understanding the underlying motivation behind our clientsโ 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 clientsโ concerns.
– We balance potential risks against anticipated benefits of the acquisitions to provide recommendations that best fit the clientsโ 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.
