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Pitfalls associated with mergers and acquisitions

When considering a merger or acquisition it is essential that you plan and research all the relevant facts, as such, having an expert corporate solicitor can be vital in ensuring the right deal, on your terms.

Potential pitfalls to consider

It can be said that the value and profitability of a merger or acquisition has a direct correlation with the quality of research carried out and corporate legal advice. Although obstacles can arise unexpectedly, there is no substitute for thorough preparation.

Both mergers and acquisitions can become more costly than forecast – a merger if mutually agreeable terms cannot be agreed, and an acquisition if the deal becomes hijacked and a bidding war materialises.

Indeed, the above situations can, far from increasing the status and profitability of a business, actually distract focus from core concerns and leave firms saddled with considerable costs for things such as financial and legal services.

Furthermore, some mergers and acquisitions which appear attractive on the outset may, with the right investigation and research, begin to look less so, whether because of basic incompatibilities or worrying contingent liabilities.

A corporate legal advisor should look to uncover all liabilities associated with a merger or an acquisition and this is known as a due diligence check.

Furthermore, a mergers and acquisitions lawyer has a responsibility to inform clients of all relevant legal cases involving the business, as well as its contractual obligations to its employees, customers and suppliers.

For specialist mergers and acquisitions advice from George Ide LLP’s corporate legal services team, call our offices in West Sussex, or use the contact details provided in our solicitor profiles.

George Ide is one of the leading full service legal firms in the South and has offices in Chichester and Bognor.