Due Diligence of M&A agreements

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Due Diligence of M&A agreements

Due diligence is a mandatory stage that precedes the conclusion of an M&A deal, involving the acquisition of a third-party business by a commercial organization. The realities of the modern market for mergers and acquisitions of companies require from the buyer detailed research and a balanced analysis of all risks and pitfalls that will help make the right decision to make a profitable and safe transaction.

Law firm LAW & BUSINESS conducts M&A Due Diligence for both buyers and sellers who do not intend to yield to the counterparty in the transaction in price and want to absolve themselves of responsibility for further problems. We work all over Ukraine.

What is M&A

Mergers and acquisitions (M&A, mergers and acquisitions) is a classic way of scaling, expanding a business, as a result of which two (or more) legal entities form one large enterprise. The purchase and sale of a company involves the purchase of assets or shares / stakes in the authorized capital of the company or their exchange for corporate rights or assets.

As a result of the merger, a new business entity appears, the merged companies cease to exist or retain the status of a legal entity. In a takeover, the acquired organization loses its own status and becomes part of the parent company. Mergers and acquisitions of companies are possible in various fields of activity.

What is included in the legal audit of M&A agreements

Due diligence on M&A transactions includes:

  • collection of information about the acquired company, including the study of data presented in state registers;
  • analysis of the collected information and documentation;
  • checking the purity of the M&A agreement;
  • compiling a list of legal risks and providing recommendations for their mitigation.

The expert analysis raises, in particular, issues related to:

  • significant assets (verification of documents for ownership);
  • the presence of disputes between shareholders / participants of the company;
  • the legality of previous transactions;
  • objects of intellectual property;
  • the presence of encumbrances on property;
  • participation of the company in litigation;
  • labor contracts and payment of monetary compensation for the dismissal of top managers, etc.

In addition, the audit in the field of M&A provides for the analysis of possible violations by the parties to the transaction of antimonopoly legislation.

Due Diligence Results of M&A Agreements

Based on the results of the audit, you will receive a detailed report listing the existing and possible legal risks and recommendations for their mitigation. The results of an independent examination make it possible to:

  • make a final decision on the conclusion or refusal to conclude an agreement;
  • conduct effective negotiations to agree on a price and other terms of the transaction;
  • include clauses in contracts to minimize risks.

Additionally, you can order legal support for a business sale and purchase transaction.
To find out the cost of a legal audit of an M&A agreement, to clarify the details of cooperation, contact LAW & BUSINESS by the phone number listed on the website, or leave a request for a call back.

How to start cooperation

We are with you at every step

1. Contact us

2. Discuss your task

3. Determine the scope of work

4. We provide a commercial offer

5. We sign the contract …

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