M&A Document Checklist

When a business decides to sell, they have to do their due research on the potential buyer. The process can be long and involves studying financial statements, speaking to employees and visiting facilities. In this process, it’s crucial that the company does its best to get the most value from the sale. The M&A checklist is an effective tool for companies looking to do a deal.

Term Sheet

A term sheet is also known as a memorandum or intent, and it defines the business terms of hop over to this web-site the transaction. These are legally binding documents, and if they’re not written and executed in a clear manner, it could cause problems in the future.

Purchase Agreement and Letter of Intent

The next stage in the M&A process is getting the final purchase agreement in place. This is a legal contract which outlines the conditions of the deal and is signed by both parties to agree to the M&A process. Then comes the M&A due diligence process that involves reviewing financial records and other sensitive information in a secure environment.

HSR filings

Under the Hart-Scott-Rodino Antitrust Improvements Act, M&A transactions that meet certain requirements must file an initial premerger notification with the Federal Trade Commission and Department of Justice prior to closing the deal. This is to ensure the merger will not have a negative impact on competition.