Merger and acquisition transactions are legally and visually complex alone. This is why disputes between the buyer and seller can openly happen and implode at any given point in time. Occurring at any stage of the deal, from start to finish. The worst case is it happens at almost the closing of the deal, and everything has been finalized.
As a buyer or seller, you must anticipate any problems or disputes and avoid any problems beforehand. The last thing that needs to happen is a bit of ego to get in the way because the buyer or seller is being misunderstood. Doing so can avoid any costly financial and legal consequences of happening. Listed below are a couple of “misunderstanding’ classifications that could go wrong in a deal.
Disclosing confidential information – Violating this phase, as we call it, a pre-contractual obligation, can brew conflict immediately. M&A deals take an array of time and hours involving access to the innermost details of a business. When this caliber of information is leaked to third parties, it can be catastrophic and single-handedly tank a deal.
Incomplete or inaccurate disclosures- Issues can arise when the seller does not provide factual documentation about the business that affects the deal. This may include information regarding tax liabilities, pending lawsuits, or regulatory investigations.
Protecting your interest during a merger acquisition is vital. The thrill of buying or selling your company may cloud your judgment. The lengthy process of your business being vetted is very time-consuming as well, and if you are not careful, you could lose the deal completely. Avoiding leaving anything to chance and ensuring that the deal is going to close begins with finding the proper legal team to guide you through to a successful outcome. Having legal involved sooner rather than later will get you a raw deal and could be the difference in protecting you from future legal liabilities. Reach out to Enara Law today. To get in touch with one of our M&A attorneys today, contact [email protected] or call 602-687-2010.