Last Updated on December 16, 2022 by Anda Malescu
Many people and especially the law students ask what do mergers and acquisitions lawyers do
With mergers and acquisitions lawyers there are no typical days because each business is different and require a customized road map, but there are certain aspects of the M&A practice that is consistent across cases. But in order to understand what mergers and acquisitions lawyers do, it is important to learn what is mergers and acquisition as an area of law.
In the United States, mergers and acquisitions or M&A as it is commonly known, is a branch of corporate law dealing with companies that are purchasing and/or merging with other companies. The corporate statutes of each state describe the basic corporate attributes and structural changes such as mergers and acquisitions.
Most of the mergers and acquisitions work is done by medium and big law firms
The large law firms generally focus on the sale and purchase of public companies, while medium and small law firms focus on the sale and acquisition of private companies. The acquisition of public companies are generally the most complex deals and the largest in terms of price and are often cross-border and involve cash or stock considerations. Typically, medium-sized law firms participate in M&A deals among large private companies, and small law firms focus on mergers and acquisitions of small private companies, which are often franchises. However, the M&A deals between private companies while are not be as complex as with public companies, can also be challenging and multifaceted.
Malescu Law P.A. – Business Lawyers
A day in the life a mergers and acquisitions lawyer includes speaking to clients and colleagues and reviewing or drafting corporate documents, checklists and other contracts and licenses
In the beginning of an M&A transaction, the Buyer’s lawyer focuses on conducting due diligence and preparing the initial drafts of the necessary documents. On the Seller’s side, the lawyer engages in collecting and preparing all the information and documents for due diligence. The M&A process continues with the lawyers getting on calls and meetings to discuss and negotiate issues discovered in due diligence.
After, the lawyers revise the sale or purchase agreement to reflect the evolving business deal among the parties. Finally, the process enters the closing stage when the lawyers for both the Buyer and the Seller spend time on finalizing the agreements, making sure the closing conditions are satisfied and obtaining all the signatures required.
In a nutshell, our answers to what do mergers and acquisitions lawyers do include:
- Identify the client’s business objectives
- Identify legal issues
- Create checklists for the M&A deal
- Conduct legal due diligence
- Advise of the deal
- Negotiate
- Work with other attorneys to identify regulatory obstacles
- Obtain third-party consents
- Sign and close the deal
Generally, mergers and acquisitions lawyers work on the same types of transactions throughout their careers – the purchase or merger of companies. But even if M&A lawyers work on one type of transaction every time, the work is far from dull because there are always nuances that arise from deal to deal. For example, acquisitions that use the same deal structure vary in complexity based on the industry, the size and bargaining power of the Buyer and the Seller, and whether the transaction is a strategic one between competitors or by a financial sponsor. However, for those individuals interested in becoming mergers and acquisitions lawyers it is important to remember that corporate M&A practice is demanding and fast-paced and can result in burnout.
Contact us or schedule a consultation with your business attorney in Miami, Florida USA to discuss what do mergers and acquisitions lawyers do and assist you with your mergers and acquisitions needs.
Malescu Law P.A. – Business Lawyers
