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A Done Deal: Post-Transaction Planning

The final part of a seven-part series on the anatomy of an M&A deal from the seller’s perspective. To read Part I, which covers the basics of pre-transaction planning, click here. Microsoft Word - Mercurio - Anatomy of a Transaction - Word VersWhat should a seller do after a completed M&A transaction? First, make sure the deal is in fact, done. Have you:

  • …verified the purchase price?
  • …fulfilled your restrictive covenant obligations?
  • …resolved any lingering disputes?
  • …tied up every loose end relating to your prior role in the organization?

If so, bravo—you have made it through what many former business owners consider the most emotionally trying time in their careers. And as for the question of what to do next, I am happy to report that it’s up to you. Some sellers use the proceeds of their sales to fund their next venture, be it a startup or the purchase of yet another business. Others retire or travel, make investments, join a board of directors… the list goes on. But whether you find yourself at the golf course, leading a nonprofit, on the other end of a new transaction, here are some words of advice to ensure you continue to meet your strategic objectives, whatever they may be:

Hire a financial planner.

This is step one for anyone who has recently come into a large sum of money. A financial advisor not only makes managing your portfolio easier, but can offer perspective on market forces and trends, giving you insight into investment opportunities. From guiding your decisions to managing your estate, a good planner will improve your financial literacy while taking care of the important details you may otherwise miss.

Keep in touch with your accountant.

Your accountant, who last played a role in the contracting phase of the deal, remains an important contact once the transaction is complete. As the custodian of the sale’s financial documentation, your accountant is a vital record-keeping resource, especially if any unforeseen disputes with the buyer arise in the future. Which brings me to my third point:

Don’t let go of your attorney.

It should go without saying, but you should keep your attorney’s number handy, even after the deal is inked and the money exchanged. Though legal issues at this juncture are uncommon, they do happen from time to time. You attorney, familiar with the transaction, will be able to take care of things promptly. Besides that, your only mandate at this stage is to do right by yourself and your family. Enjoy your new status in life. If you missed any part of this series, or would like a refresher, click the links below to jump to any phase of the transaction:

Phase 0: Pre-Transaction Planning

Phase I: Letter of Intent

Phase II: Due Diligence

Phase III: Contracts

Phase IV: Closing

Phase V: Post-Closing   Have a question about an M&A topic I haven’t covered? Need advice on your upcoming sale? Click here to get in touch with me.

ABOUT MICHAEL N. MERCURIO

Mike_Mercurio_WebsiteNEWBusiness attorney and M&A lawyer Michael N. Mercurio serves as outside general counsel on matters related to business law, M&A, and real estate law As a strategic partner to firm clients, Mr.  Mercurio regularly counsels entrepreneurial individuals and assorted entities on all aspects of business and commerce, with a core specialty in mergers and acquisitions—both from the sell side perspective and buy side perspective.

You can also connect with Offit Kurman via Facebook, Twitter, Google+, YouTube, and LinkedIn.

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