Mergers and acquisitions (M&A)

M&A transactions are not only strategic steps, but also a test of legal accuracy, where every detail and provision can have a decisive impact on the outcome of the transaction. Prevence Law Firm provides services throughout the entire documentation process. From the initial drafting of the “letter of intent” proposal, which defines the main terms of the transaction and sets the basis for further documentation, through to the drafting of the main contracts, such as sale and purchase agreements, shareholders’ agreements, financing agreements, and other related documents. Once the negotiation process is fully completed, we prepare the deal closing documentation. Our experts keep abreast of the latest legal trends and practices in M&A, ensuring that our clients receive the highest level of service and advice at all stages of the transaction. 

Due diligence is comparable to doing your homework and helps the acquiring business or investor to understand the risks involved in a transaction and to see a more realistic picture of the company. During due diligence, it is important for potential investors to understand things such as the extent of liabilities between current shareholders and founders, the company’s existing long-term liabilities, existing and potential claims from third parties, or any other liabilities that pose a material risk (e.g., there are cases of executives who are already in an existing employment relationship with a company with very high severance payments – the “golden parachutes” – which often make it difficult to replace the workforce). 

In many cases, the obstacles and risks involved can be managed, but only due diligence can help to assess the proper terms of the transaction and its long-term success. 

Every step in the M&A process is critical, and deal structuring becomes a key factor in the long-term stability and success of a business. Mistakes at this stage can have both financial and legal consequences. The Business Law Team at Prevence leverages its experience and sector understanding to provide advice tailored to each client’s unique business model, enabling them to achieve the optimal structuring in regard to the transaction. We analyse every aspect of the deal, from the method of acquisition, such as the purchase of shares or assets, to the sources of financing and tax optimisation. In addition, the lawyers at Prevence are highly experienced in navigating complex deals involving multiple entities or requiring sophisticated legal constructions. Our aim is to ensure that the transaction is structured in the most efficient way, minimising risk and maximising returns for our clients.