There are very few aspects of business that were not affected by the COVID-19 pandemic. Supply chain issues, staffing shortages, and remote work caused immediate problems, which have experienced some relief as the public health crisis is coming under control. As a result, there are significant changes that business owners must make to accommodate our new world. Mergers and acquisitions must still be performed carefully even within the parameters of a global public health crisis. This article explores how the pandemic has affected due diligence, deal terms, and contingencies for corporate M&A in the era of COVID.
Due Diligence Issues
Due diligence requires thorough attention to often voluminous and complex details. During the pandemic, it became clear how much work could be done remotely. That said, there are still certain things that must be reviewed in person. Profit and loss statements are not reliable if they are not supported by evidence obtained through in person review of various business operations, and new technology and other tangible products must be thoroughly examined in person to assess their market viability. It is critical for business owners not to cut corners on due diligence, even with the pandemic’s limitations. Our corporate lawyers know how to develop creative solutions for meeting due diligence obligations given these limitations.
Almost every term of a deal can be affected by some aspect of the pandemic. Due diligence, consumer studies, and financing are almost certain to take longer. Some procedures (such as board votes or other matters of corporate governance) may have to be moved remotely or online. Key staffing issues might have to be left unresolved due to the current job market. If the parties are willing to be flexible and creative, they can come up with solutions that are adaptable to any situation. No merger or acquisition should have to fall through simply because its terms are affected by the pandemic. Our attorneys can provide expert review of your transaction to see how the deal terms can be modified to everyone’s satisfaction.
Any experienced business person knows they must plan for contingencies. Now, in the wake of the pandemic, contingency planning has never been more important. Thorough preparation can help companies merge or acquire others with less risk from unknown factors. The past two years have been a crash course for everyone – government, private businesses, and individuals – in planning for the unexpected. Structure Law Group has experience helping business owners troubleshoot all kinds of contingencies. We can help your business identify and prepare for many contingencies in the M&A process. Delays, staffing shortages, supply chain disruptions, and other general business problems can all be addressed with advance planning and agreements. This planning can prevent deals from falling apart in even the most complicated circumstances.
The Right Mergers and Acquisitions Attorneys For All California Business Owners
Mergers and acquisitions have evolved into complex transactions. Even with the challenges of the pandemic, business owners still have legal obligations of due diligence, as well as financial obligations to their shareholders. The experienced San Jose corporate lawyers at Structure Law Group can help business owners address changes, contingencies, and problems in the mergers and acquisition process. Even in the wake the pandemic, your business can achieve profitable mergers and acquisitions without undue risk. Call (408) 441-7500 to schedule a consultation or contact us online.