Parties to a merger or acquisition always sign a non-disclosure agreement and declaration of intent first. This provides an assurance (mainly for the seller) that confidential data will not be made public and that both parties will endeavour to effect the merger or acquisition by contract. Normally, the buyer will additionally wish to carry out an audit, also known as a due diligence investigation, to gain insight into the liquid assets, solvency and outlook of the company which is the object of the acquisition or merger. Once this audit has been completed, clarifying the position of the company in question, the parties can delineate their negotiation strategy. Aspects to be negotiated include price and guarantees.

Our business law specialists can counsel both buyers and sellers in the negotiation of corporate acquisitions and in the performance of due diligence investigations.