A New York company contemplating a merger with or acquisition of another business can anticipate both challenge and, potentially, great opportunity.
M&A transactional activity marks a key development for any commercial entity, regardless of its size and type. Merging with or acquiring a new partner obviously entails an exacting and timely consideration of many preparatory matters.
How an entity deals with and follows through on key issues at early stages in the M&A process is often the driving factor that either ensures success or promotes failure. We noted in a recent R3M Law blog post spotlighting mergers and acquisitions that there are “important things to focus upon and do relative to any M&A transaction.” Duly attending to those requirements can help careful and proactive business managers maximize opportunities and mitigate risks.
We talked about having a firm understanding of the “end goal” in a material company restructuring in our above-cited February 9 blog entry. There is of course much more than that to consider regarding M&A activity, as well.
Like due diligence, for example. Doing the homework necessary to fully understand another company’s operations, finances, legal commitments, employee relations, tax concerns and more is a critical step linked with making an informed decision.
Price, too, is obviously a paramount concern. Is there a firm strategy in place to accurately assess a fair valuation? What factors went into management’s assessment? Is there flexibility and/or a walk-away threshold figure?
Proven commercial transactions attorneys help valued clients implement sound M&A strategies that fully address risks and opportunities. The representation they provide is on-point, tailored and unwaveringly focused on promoting the best interests of commercial decision makers in every instance.