7 Questions to Ask an M&A Lawyer

Mergers and acquisitions are not matters for in-house counsel or a general practice attorney. These complex undertakings require the guidance of a lawyer with extensive experience in all aspects of the M&A process. 

 An in-house attorney may be too close to the company and those who run it to be objective when it is necessary to keep emotions under control. With their long timeline and high stakes, M&A transactions require a lawyer who can give objective insight, control emotional aspects of the transaction, and convey bad news to the owner when necessary.

With skilled legal representation, a business owner can ensure fair terms, identify potential problems before they arise, and mitigate legal risk and last-minute crises in the most efficient and economical manner possible. By asking the 7 questions below, you can find an M&A attorney with the skill, experience, and confidence required for a successful merger.

 Do you specialize in M&A and do you have ample experience?

To better understand the attorney’s level of experience and understanding, ask them how long they have been handling M&A transactions and how many they do on an annual basis. You can also inquire about the number of M&A transactions they’ve done in your specific industry, although you should generally prioritize experience and knowledge of M&A over industry specific experience. When it comes to mergers and acquisitions, experience is significantly more important than educational background or the overall prestige of the firm.

 Is it time to sell?

If your company is not ready to be sold, you want an attorney who will be straight with you. Spending hundreds of thousands of dollars (or more) on an ill-advised or premature deal is every business owner’s worst nightmare. If concerns about profitability or intellectual property issues present hurdles, an experienced M&A attorney can help you resolve these obstacles before moving forward.

Do you understand our goals?

If your attorney is solely focused on closing the deal, the result may be a substandard sale. Make sure your M&A lawyer understands your goals and knows what to push for and what to be able to give. Also make sure your lawyer is willing to alert you when a deal is not in alignment with your goals. An M&A attorney who understands how your business operates can be the difference between the success or failure of the merger.

Can you represent me effectively in front of the opposing board of directors?

An effective M&A lawyer must be able to get the board through the more challenging roadblocks and complexities of the sale. They must convey information and advice in a timely and confident manner.

Do you understand how this deal will affect our employees and their families, benefits, and pensions?

In addition to protecting the rights, best interests, and reputation of the new company and its owners, successful M&A transactions must take into account the company’s employees. When it comes to getting the best deal and taking care of employees, finding the right balance is one of the biggest challenges. It’s also one of the most important.

Do you have a good team and who will actually be doing the work?

Larger firms often use their top talent when pitching to businesses then pass off the work to less-experienced associates. They frequently have a pyramid structure, with a few highly-skilled partners at the top and a massive base of associates at the bottom. Confirm that you will be working directly with the skilled and experienced A-team that you hired.

 What is the expected price range?  

Although it’s impossible to guarantee a specific price due to the changing nature of M&A transactions, your attorney should understand your budget and be able to give a ballpark estimate, provide strategies for reducing costs, and give notice if you’re getting close to exceeding your budget.

Contact Our Pasadena M&A Attorneys Today

The legal team at Parsus Law provides skilled counsel to business owners from all industries as they navigate the complexities of the M&A process. With our extensive and wide-ranging experience in all aspects of M&A, we are uniquely positioned to help you achieve your desired goals.

Contact Parsus Law today to discuss your business objectives and learn how we can support you through this critical time.