Legal aspects to consider in the evaluation of mergers and acquisitions for a successful negotiation

M&A ("Mergers and Acquisations") operations can have many economic and financial justifications for their realization. Although each operation has its strategy and reason for being, there are some common issues and all that should require attention and care by the parties involved.

It is essential that an M&A operation will be advised by legal professionals from start to finish, seeking greater business security to be done. In this regard, some of the main legal aspects to be considered during the analysis of a M&A opportunity are: evaluation of corporate structures of the companies involved in the operation; Legal and regulatory compliance of organizations; Contractual questions and documentation to be shared between companies; preceding conditions for the operation; Issues involving the intellectual property of organizations; among others.

for a successful operation, so it is very important to plan and structure the steps to be met, which may include:

1. Planning: At this stage, it is of paramount importance that the analysis of the areas of action involved is performed and that the intention to carry out the M&A operation, through a letter of intent or memorandum of understanding, which are preceded by Confidentiality agreements, responsible for obliging the parties involved in the operation to protect the confidential information provided by each one. Here, it is also important to perform a due diligence, to understand the risks and conditions for the transaction.

2. Objectives Definition: Necessary to keep the goals and expectations of stakeholders in the business clear, and draw the path that will be followed by those involved after the operation is closing.

3. Corporate reorganization: It is necessary to evaluate the need to reorganize the corporate structure of the companies involved and the rules applicable to the organization in relation to which the operation is intended.

4. Execution and Implementation: It is the consolidation of the operation, through the elaboration, negotiation and celebration of the definitive documents of the transaction, whereby all the terms and conditions of the business will be established.

M&A operation, as noted, requires the attention of experts since its inception, considering the legal and market and market details involved. Count on the legal advice offered by the team of Zugno & Peña, which specializes in ensuring successful negotiation and in accordance with applicable legislation and best practices in the market.