M&A Document Checklist

If a business decides it wants to sell its business, it must conduct due diligence on any prospective buyers. This can be a lengthy process that involves reviewing financial statements, interviewing employees and touring facilities. During this time, it is important that the company does everything possible to maximize the value of the deal. The M&A document checklist is a useful tool for businesses looking to make an acquisition.

Term Sheet

A term sheet, also known as an expression of intent or memorandum understanding is the first step in an M&A transaction. It defines the commercial terms for the deal. These are legally binding documents, and if they’re not written and executed in a clear way, it could cause problems https://www.dataroomtech.info/contract-works-software-securedocs-product-review in the future.

LOI and Purchase Agreement

The next step in the M&A process is obtaining the definitive purchase agreement in place. It is a legal document that defines the conditions of the transaction, and is signed by both parties to agree to the M&A process. This is followed by the M&A due diligence process, which entails the review of financial records and other sensitive data in a secured environment.

HSR filings

In accordance with the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act), M&A transactions that meet certain requirements need to notify the Federal Trade Commission and Department of Justice of their initial premerger announcements prior to closing the transaction. This is to ensure that the merger will not have a negative effect on competition in the relevant markets.