Mergers and acquisitions are a tool to grow business, to make
more money and serve a larger customer base, at a rapid pace (in
contrast with organic growth). This notwithstanding, pursuing
mergers and acquisitions does not come without, among others,
financial and legal challenges. The due diligence process,
assessing the financial and legal status of merging companies or
target, is arguably the most important part of a merger and
acquisition, as it can prevent financial and legal problems in the
future.
From the legal point of view, assessing the strengths and
weaknesses of merging companies/target, successful tax planning and
locating regulatory requirements are among key indicators for
success in merging or taking over. For this, good correspondence
(timely and detailed communication of relevant information and
documents) is vital.
