M&A Monday: Take Full Advantage of Your M&A Lawyer

I went to law school intending to be a real partner to my clients in their M&A transactions. For years at a top-10 BigLaw firm, I did not feel real partnership with clients.*

An M&A lawyer should and can be much more than someone who drafts and negotiates legal documents.

While some sponsors may have been through a handful of acquisitions, an M&A lawyer (should) have done hundreds.

In addition to a sophisticated knowledge of M&A law and the market, a client can rely on his or her lawyer for the following:

1. Reputational Benefits. I often offer to join calls with the seller’s broker, investors, or debt sources. A lawyer who can present as reasonable, experienced, and sophisticated image will engender trust and a positive impression. The lawyer's presence is especially important for a less experienced sponsor.

2. Network. Lawyers have great networks they are happy to share with clients. I regularly make introductions to debt, limited partners/investors/equity sources (DM me if you want me to add you to my LP/debt sources list), source potential operators, or find buyers or sellers.

3. Referrals. Lawyers have a network of vetted referral partners created over years of deals. Lawyers will be able to refer you to other good lawyers, but also accountants, and diligence providers.

4. Deal Psychologist. I started out majoring in psychology. When I switched to business, then law, I never thought I would psychologically counsel clients, but that is the job of an M&A lawyer. My clients go through an emotional rollercoaster during a deal and it is my job to help them through it.

Sometimes they need to be told they have what it takes. Sometimes, I help them put the challenge in perspective, and sometimes I just empathize. I encourage calculated sponsors to take risks and risk-takers to be more calculated. Sometimes we discuss the challenge of entrepreneurship on the family and sometimes I have a call with the client and their husband/wife to set them at ease.

Each Monday I post one lesson buyers or sellers of a business should know. I learned these tips representing top private equity groups and working with some of the best M&A lawyers in the world. These are tips that can and should be applied to independent sponsors and searchers. DM me if there is a topic you want me to cover or if you have any questions.

*There were various reasons for this and I can explore them in another post.