The role of lawyer in M&A deals

To carry out a successful M&A deal, the buying enterprise needs to pay attention to the accuracy of information, analyze the potentials as well as forecast potential risks from the selling enterprise.  In addition, it is advisable to actively seek support from brokers and advice from professional law firms. If calculated carefully, seize the opportunity at the right time to make the right decision, M&A will be an opportunity to bring Vietnamese businesses to new heights. 

The role of lawyer in M&A deals

In our experience, legal consultants and lawyers play a large role in successful M&A deals. With qualified, experienced and reputable lawyers who can bring high quality services to clients in M&A deals, detail:

1) Consulting and supporting businesses in the legal field: In order to overcome the lack of understanding of the law and knowledge in the stages of valuation, restructuring, etc. in enterprises, Legal consultants and lawyers not only provide information, explain the law on M&A, but also give advice to prevent disputes and legal risks during the implementation of M&A activities for businesses.

In addition, legal consultants and lawyers will assist enterprises in effective restructuring, attracting more investment, sounding corporate finance, determining their direction after the merger …

2) Consulting and supporting businesses to check the accuracy of information: In fact, the information and data reported are often hidden by the conflict of interests between the buyer and the seller. Therefore, checking the accuracy of information is the first rule that businesses must follow when conducting an M&A deal. 

3) Consulting and analyzing the potential of the business: The value of the business is not only in tangible assets such as machinery, factories, capital… but also in other intangible assets. 

The value of an M&A deal increases or decreases depending on intangible assets such as strategy, vision, human resources, brand, proprietary products, listing status, etc.

4) Support, analyze and forecast risks: The level of success after M&A depends a lot on a clear plan and strategy with anticipated risks of the bosses. With the assistance of a lawyer, the buying enterprise can anticipate bad debts that are not listed on the book number, assets that are not depreciated when in fact are almost completely damaged or cash flows from selling fixed assets rather than selling goods… In addition, the risk of human resources is also something that businesses need to be warned about early because there are many deals and key officials leaving after the merger. It is estimated that the risk ratio for M&A deals can be over 50%. It is not easy for a new business to have a well-functioning apparatus in the post-M&A.