Sealing the deal

Getting deals done

How can leaders navigate the increasing complexity of the M&A landscape?

Almost 7 in 10 business leaders (69%) believe that involving legal advisors early on is crucial for ensuring the success of an M&A process. We explore how businesses can prepare for M&A from both a buy-side and a sell-side perspective.

While the appetite for M&A is high and there are promising indications of an increase in deal-making, challenges including regulatory complexity and buyer-seller misalignment are dampening the M&A market.

How can buyers and sellers bridge their differences and overcome these barriers to unlock the immense opportunities that M&A can offer? Business leaders should focus on getting their organizations as deal-ready as possible, strengthening their approach to regulatory compliance and risk management, and understanding the priorities and strategic aims of potential partners.

“As companies navigate intense market volatility, it is important for leaders to prepare for transactions, either buy-side or sell-side. Organizations effectively need to be ‘ready to go’ at any point, so that they can rapidly pivot and adapt to the changing landscape.

“Extensive preparation is key here. For buy-side transactions, businesses need to ensure that they have the right advisory relationships in place. For sell-side transactions, leaders need to put themselves in the shoes of buyers, considering what they would want to see from potential counterparties, and then ensuring they have the capabilities and processes in place to reflect this.”

Benjamin Lee, Partner (London), BLCP

Seeking expert support

Business leaders can look to their internal and external legal teams, investment firms, and M&A advisors to help them find opportunities and secure deals. Rather than involving their lawyers only at the later stages of a deal to manage aspects like compliance, due diligence, and contract negotiation, leaders recognize that their legal advisors can play an important role in the initial stages. Almost 7 in 10 business leaders (69%) believe that involving legal advisors early on is crucial for ensuring the success of an M&A process.

M&A lawyers’ industry knowledge and awareness of market trends means they can help seek possible acquisition targets; 69% of business leaders say that they look to their legal advisors to identify opportunities for growth through M&A. This reflects how the role of lawyers has evolved significantly over time. Previously tasked solely with interpreting the law, lawyers are now esteemed by many as trusted advisors for the entire M&A process. They leverage their skills to build connections, offer strategic insights, horizon scan, and cultivate strong relationships across sectors and industries. Business leaders involved in M&A activity should take this into account and leverage their relationships with legal teams and advisors to ensure they secure successful deals.

“Deals are taking longer as business leaders increasingly focus on navigating regulatory complexities. It is essential for legal advisors to not only have a comprehensive understanding of their clients' businesses and the regulations they are subject to, but also to anticipate developments in their industries. This deep level of insight enables lawyers to guide clients through these challenges and help them unlock new opportunities.”

Tonio Sadoni, Partner (Hamburg)

As businesses seek to enhance their competitive edge, M&A offers a route to achieving economies of scale, diversifying product portfolios, and accessing new markets. Leaders are optimistic about the potential that deal-making offers and many are actively seeking opportunities, involving their advisors early in the process, and considering the shape their businesses need to take in the future. As market conditions, geopolitical changes and the expectations of partners becomes better understood, M&A surge could be on the horizon.

The report

Getting Deals Done maps the M&A motivations of both prospective buyers and sellers, examines the complexities that are holding deals back, and considers how business leaders can get their organizations “deal-ready” to unlock the potential of M&A transactions.

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