Are you considering hiring an M&A lawyer?
Regardless if you’re buying or selling, involving an experienced M&A lawyer early on can help ensure a successful transaction and avoid legal issues down the line.
While all M&A lawyers are different, they should be able to answer some key questions about their process and how they can help you reach a successful sale.
You’ll want to be sure they are qualified to do your deal and are the right option for your needs.
In this article, we’re going to walk through 12 questions you should ask any potential M&A lawyer before deciding to hire them.
M&A Lawyers: 12 Questions to Ask
- What experience do you have in M&A law?
- Do you have any other experience in this specific industry?
- How will we work together?
- How many deals have you done?
- Do you typically represent buyers or sellers? What’s the percentage breakdown?
- What are the dollar values of the deals you’ve done over the last 3 years?
- What is your process for helping sellers reach a successful sale?Â
- Can you provide me with references from clients who have engaged you in M&A work?
- What is your fee structure?
- Are there any areas where additional advice may be necessary?
- What do you think are the biggest risks I should be aware of?
- Do you have any questions for me?
What experience do you have in M&A law?
The first question you should ask your potential lawyer is what experience they have in M&A law.
It’s critical to know how much experience the lawyer has in dealing with M&A cases. If they do not specialize in M&A, then it is best to look for someone who does. M&A law requires a special set of skills, and it is best to work with someone who has the experience required to handle these kinds of deals.
Ask for specifics and make sure they have experience representing clients with similar goals or involved in a transaction of a similar size.
Do you have any experience in this specific industry?
Mergers and acquisitions often involve complex legal issues that require an understanding of the industry. While general business law has its place, it is also important to make sure your lawyer understands the specifics of your field.
Do they have any relevant industry knowledge or relationships?
Ask about their familiarity with relevant regulations and laws that could impact your transaction. In addition, get a sense for any relationships they have with industry peers, vendors, and even potential buyers or sellers that could be beneficial.
How will we work together?
This is an opportunity to get a good understanding of how the attorney typically works, as well as gauge how available they will be during the process.
A few things to ask:
- How will communication will take place between you and the lawyer—will it be via email or phone calls?
- What are their expectations for responding to questions and requests?
- How often do they update clients on progress?
- How much of the work will be done by their firm?
It is also important to get clarity on deadlines and expectations so you can plan accordingly. Be sure to ask when you should expect documents, contracts, or other paperwork that may be needed in the transaction process.
How many deals have you done?
This question is designed to give you an idea of the attorney’s familiarity with M&A law and what level of support they can provide.
Ask them how many deals they have completed so that you can get an idea of their level of knowledge and expertise.
A lawyer who has handled hundreds of deals likely has a better understanding of how to navigate the complexities of a transaction compared to one with fewer deals under his or her belt.
Do you typically represent buyers or sellers? What’s the percentage breakdown?
This question is important as it will give you a better idea of the attorney’s experience when it comes to representing either buyers or sellers. A lawyer who has a history of representing buyers or sellers could be more adept at handling strategies that favor one side over the other.
Knowing the breakdown will also provide clarity on their experience in negotiating, which could be beneficial depending on your situation.
What are the dollar values of the deals you’ve done over the last 3 years?
This question gives you a better picture of the types of deals that the lawyer typically handles. If they have dealt with transactions worth millions or even billions of dollars, it may indicate that they are equipped to handle larger and more complex deals.
Ask for a breakdown of the transactions and their respective values to get a better understanding of their experience and success rate.
What is your process for helping sellers reach a successful sale?
The process of selling a company can be complex, and it’s important to find out how the lawyer plans on helping you navigate it.
Ask about their approach to finding buyers, structuring deals, due diligence, negotiating terms, and so on. Make sure you get an understanding of the timeline for completing each step in the process.
Can you provide me with references from clients who have engaged you in M&A work?
Any lawyer worth their salt will be able to provide references that speak highly of them, so be sure to ask for this information. This is an opportunity to get a better understanding of the lawyer’s process, communication style, and other important details that can give you peace of mind when making your decision.
References from previous clients can provide valuable insight into the attorney’s track record, so it is important to ask for them. Be sure to actually call and talk to the references provided by the lawyer before signing any agreement.
What is your fee structure?
It’s important to understand up front what type of fees and charges the attorney will be charging for their services.
Make sure you know exactly what services are included in the fee structure, and also ask for a written fee agreement. Ask about their hourly rate as well as any other costs associated with working on the transaction.
In some cases, the lawyer may be willing to defer fees until closing or spread out payments over time.
This isn’t just about knowing how much you’ll be charged for their services; it’s also about understanding what those fees are for. That way, you can budget accordingly and avoid any surprises down the line.
Are there any areas where additional advice may be necessary?
Most M&A deals involve more than just the lawyers – other professionals such as accountants and financial advisors will likely be needed to ensure everything is in order.
Ask your attorney who he or she typically works with on deals and get a sense for any additional costs associated with their involvement.
What do you think are the biggest risks I should be aware of?
As with any deal, there are risks involved in an M&A transaction. Your lawyer should be able to give you insight into the potential risks and help you come up with strategies to mitigate them.
This will depend on the type of deal and other factors, but your lawyer should be able to provide advice and guidance on how to protect yourself from any unexpected issues that may arise during the process.
This can include things like unanticipated tax implications or regulatory issues that may arise during the course of negotiations. Knowing what these risks are ahead of time can help you make informed decisions and prepare for any eventuality.
It’s also important to understand how disputes will be handled if one arises between buyer and seller during negotiations. Having an experienced attorney who knows how to navigate legal issues as well as how to handle a conflict can be invaluable.
Finally, make sure you understand what risks you may face if the deal fails to close or is terminated for any reason. Ask your lawyer to explain in detail what will happen in these scenarios and make sure you’re comfortable with their explanation before moving forward.
Do you have any questions for me?
This is a great question to ask because it speaks volumes about how interested the lawyer is in taking your case. If they don’t take any interest in understanding what you’re trying to achieve and why, then they may not be the right fit for you.
It also shows that they are willing to invest their time in getting to know their client and their needs before embarking on the project. Be sure to answer any questions honestly and completely so you can make sure that the lawyer knows exactly what they’re getting into.
The more information the attorney has, the better prepared they’ll be to help you achieve your goals.
Conclusion
By asking these questions, you’ll gain a better understanding of an M&A lawyer’s qualifications and experience, which should help you make an informed decision when it comes to hiring one. Working with an experienced attorney who is knowledgeable in M&A can be invaluable as you navigate the complicated process of a merger or acquisition.Â
By partnering with a qualified M&A lawyer, you’ll not only get sound advice and guidance that could help ensure a lucrative transaction, but also peace of mind knowing that your interests will be protected throughout the entire process.
So don’t forget to ask these 12 questions before making a decision—it could make all the difference.
