Mergers and acquisitions involve the combination of two businesses to increase profits, improve efficiency, and enter new markets. Companies involved in M&A are subject to complex regulations that must be cleared before the deal can move forward. It’s critical to have legal counsel represent your organization, but there are added benefits to retaining local counsel.
Potential Regulatory Challenges to Your M&A
The benefits and risks of every merger or acquisition must be evaluated on their own individual merits, and this is no less true with respect to regulatory issues that could impede the deal. A few common examples of regulatory hurdles are:
- Antitrust laws: Larger corporations especially (although not exclusively) must be mindful of antitrust rules, which are enforced both by the Federal Trade Commission and the Department of Justice Antitrust Division. These regulations are designed to prevent monopolies, anticompetitive business practices, and market distortions.
- Cross-border and interstate regulations: M&A deals that reach across international borders must comply with a range of foreign regulatory frameworks. This same issue sometimes exists within the United States, as some states impose more restrictions on M&A deals than others.
- Industry-specific rules: Certain industries are more heavily regulated than others. Examples include banking and financial services, healthcare, biotechnology, and telecommunications. Your attorney should have extensive working knowledge of the regulations that will control the outcome of your M&A.
How Can Local Counsel Help?
If you’re the target, acquiring, or merging business in Massachusetts, local counsel is able to serve the interests of your M&A transaction by taking, among other steps:
- Applying relevant state laws and regulations: First and foremost, a locally based law firm will understand the Massachusetts laws and regulations that apply to mergers and acquisitions which affect domestic corporations (not to mention court decisions which interpret them). Our firm understands each step of the M&A process and the steps to overcome regulatory obstacles that might stand in the way.
- Local knowledge and expertise: Rules and regulations do not exist in a vacuum; they have real-world applications and implications. Local counsel understand how these rules are interpreted and applied in courts and administrative bodies throughout the state. SederLaw also knows that clearing some regulatory matters between M&A parties can require mediation, and we can guide you in selecting the right mediator to attain the desired outcome.
- Handling every aspect of due diligence: Due diligence is a hands-on process in which an attorney must closely review an array of business records to make sure the deal is truly in the client’s interests. Due diligence can often uncover regulatory problems which have to be addressed before moving forward with the deal. We are able to work directly and in person with the other parties to the deal to complete this critical step.
- Alternatives and contingency planning: Although an attorney will carefully develop a personalized M&A strategy, emerging regulatory matters could force changes to the plan. Quick action can help your organization settle on alternatives and implement contingency plans. Local counsel will also be familiar with local third parties who may be brought in to assist, such as consultants, risk assessors, and mediators.
Local Counsel Is Ready to Work on Your M&A Today
Your goal with a merger or acquisition is to complete the transaction with as little delay and as few headaches as possible. Meeting regulatory demands is one essential element of this strategy, and it begins with retaining the right law firm. SederLaw understands the Massachusetts-specific legal issues that your organization will face and we are prepared to help you finish the deal. Give us a call today to learn more about our local counsel services.