What Will Be Written In The M&A Documents In 2023 In IT Sector

Based on the M&A transactions of 2022 in IT sector, the lawyers of the M&A in the IT practice of REVERA law group have summed up below the most popular legal provisions of 2022 which are going to be widespread in 2023 as well.

Anti-dilution protection

The new investment rounds represent a fundamentally important issue for both parties and, therefore, are problematic for negotiation. On the one hand, the first investor is afraid that his share will be diluted and he will lose his initial corporate rights due to the entry of a new investor. Therefore, the first investor wants to control the attraction of new financing. On the other hand, the founders are afraid that the first investor may block a new investment round and, consequently, the growth of the business.