A Legal Review Is Critical For A Successful Merger Or Acquisition

If you are preparing for a merger or acquisition, it is advisable to conduct a thorough legal review to ensure the transaction is compliant with relevant laws and regulations and to identify and mitigate potential legal risks. Here are the steps to take for an effective legal review:

1. Review the terms and conditions of the transaction: This includes reviewing the acquisition or merger agreement, any due diligence reports, and any other relevant documents.
2. Assess the legal and regulatory environment: This involves researching relevant laws and regulations, including securities laws, antitrust laws, and labor laws, to ensure the transaction is compliant.
3. Evaluate potential legal risks and liabilities: This includes assessing any legal risks related to intellectual property, employment law, environmental law, and other areas that may impact the transaction.
4. Conduct due diligence: This involves gathering and reviewing relevant documents and records, including contracts, financial statements, and legal filings, to identify any legal issues.
5. Consult with legal experts: This involves working with corporate and securities lawyers, who can advise on the transaction and help identify and mitigate potential legal risks.
6. Negotiate and finalize the terms of the transaction: Based on the results of the legal review, the parties may need to negotiate and finalize the terms of the transaction to ensure compliance with all relevant laws and regulations.

Having a thorough legal review is critical for a successful merger or acquisition, as it helps to ensure the transaction is legally compliant and minimizes potential legal risks and liabilities.

As we have learned over the past 69 years, the best approach is for the seller to be aware of all potential legal problems long before buyers get involved, so the seller can work to mitigate these problems and retain negotiating leverage. We have seen how poorly the inverse works when sellers fail to conduct a comprehensive legal review before they start a sale process. That usually results in the buyer gaining significant negotiating leverage late in the process. 

One of the most important aspects of our work is helping clients prepare for a sale. 

ABOUT US

Whether you want to sell or buy a business, Chapman Associates provides a personalized service based on our sixty-eight years of successful M&A closings and our relationships with more than 9,600 registered buyers. Chapman is one of the most respected middle-market M&A firms in the country. What makes Chapman different from the competition?



• We make a market for our clients.

• We do not charge any up-front fees.

• Our fees are based on successfully completed transactions.

• We devote senior-level attention to every M&A transaction.

• We do not delegate work to junior staff.

• We help clients set realistic goals and work hard to exceed them.

• We conduct in-depth research and rigorous analysis.

• We prepare all necessary offering materials.

• We have seventeen offices nationwide to serve our clients.

Mark Mroczkowski, CPA, CM&AA

Managing Director

mark@chapman-usa.com

www.chapman-usa.com

407.580.5317