By Lian Jeng Yap; Yanni Long
The success of an M&A transaction lies not only in the
meeting of minds on the commercial terms by the principals. Very
often, it also hinges on the anticipation of potential legal
issues, and careful structuring to navigate potential legal
obstacles and to achieve the commercial objectives in a feasible
and efficient way.
As the importance of transactional structuring may sometimes be
overlooked, we thought it would be useful to set out some of the
key considerations that should be taken into account when embarking
on any cross-border M&A transaction.
- Deal structure. The deal structure depends on,
among other things, the commercial objectives of the acquirer, and
the financial, tax, and legal and regulatory considerations. At the
macro level, a decision has to be taken as to whether the
transaction should be an asset purchase or a stock purchase. At the
micro level, a decision has to be taken as to the manner of
implementation of