Due diligence:

During the due diligence phase of an M&A deal, the financial and legal advisors representing the buyer conduct a thorough review of the target company or assets to be acquired. The main objective of due diligence is to identify any financial or legal risks that could affect the transaction. The information gathered during this phase is then used as the basis for preparing the M&A contract.

The contract:

During the M&A transaction, the legal advisors of the parties will work together to create a contract that details how the risks will be allocated between the buyer and the seller. The contract may take different forms, such as a stock purchase agreement or an asset purchase agreement, depending on the specifics of the transaction and the parties’ preferences. The allocation of risks will be based on the findings made during the due diligence phase.

The closing:

The closing stage of an M&A deal involves both the buyer and seller performing specific actions outlined in the contract to finalize the transaction. Depending on the details of the deal, the closing may vary. In some cases, a government agency’s approval may be necessary, while in others, it may simply involve the parties’ individual actions, such as paying the purchase price or transferring stock certificates.

Post-closing: After the M&A deal has been finalized, the parties involved may still have certain obligations or actions they need to fulfill, such as non-compete or non-solicitation agreements. These obligations vary depending on the specific deal, and some M&A transactions may not have any post-closing obligations at all.