What is a Mergers and Acquisitions Lawyer?
That question turns out to be surprisingly complex. The core skills are corporate law, mergers and acquisitions and shareholder activism. Corporate law covers everything from valuations to directors, board composition and corporate law, and how shareholders vote.
Mergers and acquisitions focus on buying and selling companies. In that capacity, they typically work for an acquirer, a seller and a special adviser. They also represent a company on its first filings, at shareholder meetings and at court proceedings.
An attorney who specializes in mergers and acquisitions. When firms are involved in large mergers and acquisitions, it can be a lawyer at a corporate or business law firm.
Mergers and Acquisitions Law
Lots of mergers are going on and a company that has it going on with other companies would need someone who is an expert in it.
If mergers are done right, companies will make even more profits and keep their taxes low as well.
Lawyers can help steer the transaction from beginning to end, but the lawyers who work in mergers and acquisitions law are all corporate lawyers and, although the business is the company, it’s actually the lawyer who leads the company.
He has to be a very savvy lawyer and be able to develop a good relationship with a banker or lender, get the financing needed for a transaction and steer it in a good direction. He might have to meet with corporate lawyers who have worked on many deals and can give him advice.
If it’s the first deal of many and the company is acquiring a business that it doesn’t have any history with, a lawyer who is an expert in corporate mergers and acquisitions would be more valuable because the company is looking to make this deal the best one.
What is mergers and acquisitions law?
Essentially, there are two types of mergers and acquisitions:
- Merger where there is a concurrent transfer of shareholdings.
- Merger when a stock is issued to acquire a shareholding which will bring the number of shares between the companies into compliance.
In a merger, shareholding is diluted to comply with statutory requirements. The reason the court looks at stock over money is because it is a firm’s corporate governance that controls the management and operations. Shareholders give their approval for a merger to proceed and shareholders have a legal claim to cash and profits during and after the merger.
Assessing the probability of acquisition
Sometimes a merger looks obvious, but many times there is not enough information to determine the probability of acquisition. A merger can happen or the acquisition can be conditional. If you have a background in mergers and acquisitions you might ask for the potential acquirer to submit a letter of intent (LOI). The LOI will stipulate what is being bought, how much, and what the financial terms are. In this case the probability of acquisition is nearly 100% because there is nothing left to do.
How much do M&A lawyers make?
Analyst data indicates that these lawyers can earn about $750,000 to $2.8 million annually.
However, due to all the added layers of complexity when a big corporate entity wants to buy another large corporation, they can earn more in salaries than that. For instance, companies often hire lawyers who have law degrees specializing in mergers and acquisitions to advise on the merger itself and other complexities to ensure that the merger goes smoothly and the company is protected in case anything goes wrong. That would potentially add another $200,000 to $400,000 to their annual salaries.
Corporate and business law departments
One of the most important topics for students is learning what the law actually means in terms of legal practice. Understanding the law is the foundation for understanding a business and establishing a business identity. Business lawyers are qualified, experienced, and educated lawyers who come from different legal fields such as law, economics, business, engineering, and law. They come from the corporate law and business law traditions and have gained their legal qualifications in United States. They are trained in areas such as company law, commercial law, tax law, and insurance and risk. By studying for a commerce or law degree, students can acquire the skills necessary to establish a strong business identity.
Do you need professional help in your corporate transactions? Maybe you want to make a mergers and acquisitions move but you don’t know where to turn for advice. We have compiled a list of organizations within our network of professional attorneys and corporate advisors that can help you make important business decisions. Contact us today.