The Minneapolis/St. Paul Business Journal (MSPBJ) has published a “Table of Experts” panel discussion on the topic of mergers and acquisitions, featuring Hellmuth & Johnson attorney Ailana McIntosh.
When asked at what point owners, buyers, or sellers should consider getting their legal counsel involved in a transaction, McIntosh responded, “As soon as negotiations begin, ideally. Skilled M&A attorneys can assist with forming the proper deal structure, providing guidance on material terms and conditions that should be included in the letter of intent, and identifying any risks or liabilities at very early stages, which will essentially help the parties avoid a lot of obstacles and heartburn later down the line.”
McIntosh also shared, “Timing and strategy are really important, particularly for sellers. Sellers should be looking at their material contracts and deciding whether to time their market listings for when their material contract is going to terminate. I’ve worked on a few transactions where termination of a material contract was necessary, but it was going to be extremely costly, and that was a roadblock to the transaction. I’ve had some clients that were considering posturing themselves for sale, but they only had one really strong financial year, and that can be difficult to sell. A strong financial track record of several good years will help a seller get more interest and a higher value for the business.”