Mergers & Acquisitions

What’s involved in M&A?

Lawyers in M&A departments might find themselves working on mergers (a director-approved combination of two or more businesses to become one) or acquisitions — where a company obtains a majority stake in another company, without any major changes being made to the name or structure of either company. Mergers tend to be friendly, with the businesses making the decision to merge actively. However, sometimes—in the case of recession, for example—mergers can be defensive. Acquisitions aren’t always as friendly; sometimes a company may not wish to publicise that they have been acquired. The line between a merger and an acquisition can be hard to determine.

Any lawyer working in M&A will liaise with a wide variety of professionals – primarily the client, but also financial advisers as well as boards of directors from all businesses involved. There are many boxes to tick before a merger or acquisition is considered complete; due diligence, ensuring that all parties have the correct funds, and drafting agreements for all parties involved.

What is needed for M&A?

With M&A deals being made between corporate players of all sizes, strong commercial awareness is a must. You’ll need to understand how businesses tick inside and out, as well as the market conditions that may provoke mergers and acquisitions.

The last thing that all parties need is to be confused at a time of transition, so good communication skills and clarity of expression are key traits for any M&A lawyer. You’ll need to remain on top of all the details so that you can be an informative point of reference for your client.

Mergers and acquisitions frequently happen on an international scale, so being well-versed in international law is another good skill to have.