8 ways to make sure you don't miss out on share or asset acquisition success
When you want to be able to make your money work for you, acquiring shares and assets in precisely the right way makes all the difference. The problem is that these types of processes are highly complex, and nuanced and contain far more steps than it may appear at first. To simplify the process, we’ve broken it down into the 8 key ways you can ensure you don't miss out on share or asset acquisition success.
When it comes to share or asset acquisitions, precision and strategic planning are key to ensuring success. Accurately valuing the shares and assets you intend to acquire is fundamental to building a lucrative portfolio. Unlike more straightforward purchases, the valuation of shares and major assets often includes projected future appreciation, which can complicate determining a fair price. Understanding the basis of the valuation allows you to make informed decisions, ensuring that the investment aligns with your financial goals and expectations.
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Accurately value the shares and assets
If you want to be able to accrue wealth and build a lucrative portfolio, you need to make sure you are paying a fair price in the beginning. While a common purchase like a car or family home is easy to value, shares and major assets can be valued in several different ways. This is largely because the seller will likely include some percentage of projected future appreciation in today’s price.
Understanding how the shares and assets under consideration have been valued is the first step in the process. Once you know how the figure has been generated, you can make an informed decision as to whether it represents a fair price.
Create a clear course of action!
Once you have decided you want to pursue the acquisition, you need to create a clear course of action. This will lay out everything you need to do from signalling your intention to buy through to taking ownership and declaring your position to all relevant parties and organizations.
Skipping this step is a guaranteed way to encounter delays further down the line because it will force you to be reactive, rather than proactive. A little planning ahead with a skilled acquisitions team will help you smooth the road and overcome obstacles quickly and efficiently.
Creating a clear course of action is crucial once you've decided to pursue an acquisition. This plan should outline every step from signaling your intent to buy, through to finalizing the ownership transfer and notifying all relevant parties. Without a well-defined strategy, you risk encountering delays and unforeseen obstacles. By planning ahead with a skilled acquisitions team, you can proactively address potential challenges, ensuring a smoother and more efficient process. This approach not only saves time but also minimizes the risk of costly errors.
Ensure 100% transparency at all times!
You want to know precisely what you are in the process of buying, and you also need to make sure the seller has a clear idea of who you are. Whilst no one wants to reveal proprietary information and trade secrets, being upfront about sources of funding will make things go so much smoother.
A transparent, open approach to communication will build trust on both sides, helping to accelerate everything from the return of paperwork to the arrangement of in-person meetings. Trust and transparency need to be at the centre of any large-scale acquisition for it to be completed promptly and without complications.
Transparency and compliance are essential throughout the acquisition process. Ensuring 100% transparency fosters trust and facilitates smoother negotiations. Both parties need to be clear about their intentions, funding sources, and any proprietary information. Additionally, hiring an experienced asset acquisition lawyer is vital to maintain full compliance with industry regulations and local laws. This expertise helps prevent legal pitfalls and ensures that due diligence is thoroughly conducted, protecting your investment and securing the transaction's integrity. Engaging the right legal support is an investment in the future success and stability of your acquisitions.
Deliver full compliance at every stage
Hiring a skilled asset acquisition lawyer is the only way to make sure you are fully compliant with the rules and regulations of the industry you operate in. You also need to make sure you are legally compliant with all local laws and customs, as well as those that apply if your acquisition extends to overseas territories.
Using the skills of a specialist legal team will ensure there are no nasty surprises and that, quite literally, all the boxes are ticked. Think of it as an investment in the future legal footing of your acquisition.
Always practice due diligence
This is where you use your legal specialists to make sure nothing has been missed, overlooked, or omitted. Even the most thoroughly planned acquisitions can fall foul of issues with regulators and reporting requirements if due diligence is not thoroughly carried out.
We like to think of due diligence as the final check of the asset or share portfolio you’re buying, and it’s something that cannot be overlooked. Just as you would have a surveyor thoroughly check a property before taking out a mortgage, you need a legal specialist to do the same for a far more complex asset or share acquisition.
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Understand the mechanics of the transaction.
As the investor, you have a responsibility to understand the specifics of what your team are doing on your behalf. While a degree of outsourcing of the fine details is natural with acquisitions, you need to understand the overall process of the transaction and how it is structured.
This is important for meeting your reporting requirements, satisfying shareholders and board members that you are in control and for your peace of mind personally. If in doubt, work with a legal specialist who will be able to break things down and talk you through everything you need to know.
Operate within a sound legal framework.
The key here is to hire an experienced share acquisition lawyer who will make sure that you never unintentionally step into a legal grey area. Given the highly interconnected nature of the global economy and the rapid rise of new classes of assets, you need to make sure you are always ahead of potential changes in the law.
An experienced acquisition will ensure you avoid common issues like being accused of forming a monopoly or exercising undue influence. These are problems that can easily cost more to fix than the potential profit from the acquisition, which means hiring the right legal expertise does pay for itself.
Make sure all cross-border issues are accounted for!
Large-scale acquisitions of this nature are rarely confined within the borders of a single nation-state. Add in other complicating factors like your own nationality, tax status and the composition of your board, and you start to see how cross-border issues are not a niche.
They can significantly complicate everything from due diligence and reporting to tax and ownership. Making sure you have sound legal advice at every stage is the only way to ensure cross-border issues are in order and accounted for on the day the acquisition is finalised.
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Final thoughts
Timely completion of share and asset acquisition is only possible when you hire the right legal experts to execute a proven strategy. Taking the time to get the right people on your side from day one will ensure you don’t miss out on the success and future prosperity you and your business deserve.
To obtain a quotation please contact us on (020) 7305-7491 or at petert@pailsolicitors.co.uk we would be delighted to assist you. The writer is an Internet and digital technologies + entertainment law specialist, owner and principal solicitor at PAIL® Solicitors. Peter Adediran's specialist niche areas of practice are digital media business SMEs and IP, both contentious and non-contentious.