Whether you are acquiring a business or merging with another company, you need an excellent attorney to level the playing field for you. These complicated undertakings can easily go off track due to a poor choice of counsel.
Choosing the right M&A attorney is extremely important for the smooth completion of these business transactions. Both mergers and acquisitions involve complex legal processes and you need someone experienced to handle them for you. Here’s what you should consider while hiring an M&A attorney:
1. Size and Complexity of the Deal
The first thing you should assess before hiring an M&A attorney is the size and scale of the deal. If you own a large business that operates on an international scale like Casino777, you must hire someone who has experience with closing deals across borders. Ask the attorney about the last couple of deals they have seen through. This will help you determine whether or not they have the relevant experience to handle your company’s legal matters.
2. Staffing
Legal fees for mergers and acquisitions are high. You must demand senior level attention when you are paying thousands of dollars in legal fees. It’s common in law firms for such transactions to be assigned to both senior and junior lawyers. Inquire about the roles different team members will be playing.
Don’t assume that the lawyer who gives the pitch will handle your transaction. Ask them to identify the whole team of lawyers who will be working with you.
3. Team Capabilities
If you want your merger or acquisition to go smoothly, make sure you are adequately represented. You’ll need experienced tax, employment, and patient professionals to review the contract. Therefore, you must understand the capabilities of the entire law firm instead of just the lead attorney handling your business.
4. Bandwidth
As legal matters are often time-sensitive, you need an M&A attorney with a high sense of urgency who will see through all tasks expeditiously and efficiently. When hiring a lawyer, you must make sure they have the bandwidth to handle your transaction in a timely fashion. Your transaction can easily get derailed if your attorney does not share your sense of urgency for completing it.
5. Cost
Experienced transactional lawyers often charge a fixed amount for mergers and acquisitions. However, most M&A attorneys charge as per their hourly rate. Hourly wages for M&A attorneys typically range from $200 to $800, depending on the reputation and size of the firm. If they bill you per hour, ask them to estimate the number of hours a transaction of this type and size may take. Do your math before paying the retainer.
Hiring a less experienced lawyer to save money is not the right approach here. While experienced attorneys have higher billing rates, they are more capable of closing the deal expeditiously.
6. Ability to Negotiate
Risks and compromise are vital components of an agreement. A lawyer with good negotiation skills knows how to reach a compromise in a way that’s most beneficial to their client. They gather as much information as they can to maximize their leverage and know their counterpart’s ‘flinch’ point.
There is no one way to assess the negotiation skills of your potential M&A attorney. You can simply ask them to discuss their negotiation strategy. This will give you a good idea of their approach to deal-making.
7. Chemistry
Mergers and acquisitions are highly emotional and stressful events for both owners and managers. Selling the business that you have spent years building is not going to be emotionally easy. Having someone you trust as your legal representative will help you a lot through this difficult journey.
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