10 Tips For Managing Litigation Risk In Sell-Side M&A
By John Pollack, Adam Offenhartz and Daniel Alterbaum ( December 13, 2017, 12:08 PM EST) -- For mergers and acquisitions lawyers, sell-side representation is particularly rewarding. The client is focused on achieving a desired outcome, usually there's solid interest from one or more bidders for the target business, and the parties are ready, willing and able to commit the resources to consummating a transaction. While it is, of course, important to focus on "getting the deal done," a seller should also take into account and plan for potential deal litigation. If the client is a public company contemplating a sale-of-control transaction, the client needs to appreciate that shareholder litigation is very likely — indeed, a savvy seller should plan and run its process as if litigation is inevitable. If the client is a private company with shareholders with divergent views on the sale, litigation is also a real possibility. In either situation, a seller should keep the following considerations in mind....
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