What work do M&A lawyers do? | LawSikho Business
Mergers and Acquisitions is an inorganic growth measure for businesses – where two or more companies either enter into a business consolidation (merger) or one of the companies assumes complete control over the other (acquisition). Many great fortunes in history have been created through M&A. For instance, the steel baron and the richest person ever in the world, Andrew Carnegie, created a steel empire through consolidating many smaller steel companies and almost created a monopoly. A similar example will that be of De Beers, which created a diamond monopoly by consolidating the entire diamond production industry. Sometimes, companies are forced to merge or consolidate through M&A, like in the case of Reliance and Idea Cellular, which were forced to merge in face of competition from JIO. Another famous example will be of Microsoft acquiring Linkedin, in order to grow its market share and revenues.
Lawyers play a major role in M&As around the world. From simple acquisitions where there is a slum sale of assets to complex multi party cross border M&As, there are very different scenarios, and lawyers have to navigate a multitude of issues from negotiating with regulatory bodies to making sure each parties interests are taken care of.
Mergers and acquisitions are complex, both in terms of procedure and the amount of legal expertise required. Due to the intricate nature of the deals the terms of the contract have to be drafted with utmost cognizance, negotiated elaborately and concerns of every party addressed (from labour union to the government regulatory bodies) and here’s where lawyers with proficiency in this area come into play.
As opposed to a civil or a criminal lawyer who needs to have the knowledge of only a single stream of law, a Merger and Acquisition Lawyer needs to possess a deep understanding and technical know-how of various fields of law and business. It is not just subjects like takeover code or taxation law, which are no doubt very important – but it involves a lot of work that is not written in any statute book. For instance, you might have to convince the RBI or Competition Commission that the deal is kosher. You may have to conduct due diligence on massive organizations that have entered into zillions of contracts, have thousands of vendors and need to comply with dozens of statutes and regulations every month – and ensure if the acquirer is going to bring on some unforeseen liabilities and risks through the acquisition. It is not unheard of that large corporations have been destroyed by acquiring an entity with tons of liability that were not quantified before acquisition.
What work do M&A lawyers do
Read more: https://blog.ipleaders.in/ma-lawyers-...
To upskill yourself and stay ahead in your career, check out top courses 👇:
👉M&A , Institution Finance & Investment Laws (PE & VC Transactions)- https://bit.ly/39u1fRi
_________________________________________________________________
Find us on 🔍:
👉 Facebook: / lawsikho
👉 LinkedIn: / laws. .
👉 Instagram: / lawsikho
👉 Twitter: / lawsikho
👉 Telegram https://t.me/joinchat/J_0YrBa4IBSHdpu...
_________________________________________________________________
To stay updated about upcoming webinars, blogs, internship/job opportunities, and more, join us our:
👉 WhatsApp group: https://chat.whatsapp.com/GnNV5fHRMqS...
👉 Telegram group: https://t.me/joinchat/Resrn-xNOHd5D0Er
#LawSikho #StockMarket #Investment