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Cross-Border Acquisition Deals. André de Almeida. MAIN ASPECTS OF A DUE DILIGENCE WORK :. Timing Information Flow Data Room preferably digital Coordination of attorneys, accountants, financial advisors, consultants, etc. Unified Due Diligence Report (same terminologies & writing style).
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Cross-BorderAcquisition Deals André de Almeida
MAIN ASPECTS OF A DUE DILIGENCE WORK: • Timing • Information Flow • Data Room preferably digital • Coordination of attorneys, accountants, financial advisors, consultants, etc. • Unified Due Diligence Report (same terminologies & writing style)
OBJECTIVES OF ANY DUE DILIGENCE WORK: a) Review liabilities; b) Review contingencies; c) Identify potential problems; d) Identify exposures Risk Management:
IDEAL DUE DILIGENCE WORK FLOW: Agreement on pricing Parties agree on business terms of the transaction Agreement on financing Seller organizes a digital Due Diligence Data Room Buyer attorneys have access to DD Data Room and have daily conf calls with Sellers Reps Due Diligence Report is delivered in 15 days Parties adjust the price or business terms based on the DD Report
REAL LIFE DUE DILIGENCE WORK FLOW: Before final agreement on business terms of the transaction Buyers starts a Due Diligence Seller has not yet prepared a data room and start to colletct documents after receiving the Due Diligence list from Buyers attorneys Due Diligence starts before agreement on business terms Seller gets mad with Buyer as his attorneys are requesting information before the parties have reached an agreement Due Diligence process stops After many meetings buyer and seller agree on business terms Due Diligence continues, but without a organized data room precisely identification of key exposures Is missing at the DD Report
IMPORTANT TIPS: • Coordination with client and other attorneys is crucial; • Use of the same terminology and writing style is fundamental; • Information flow; • Hold your client!! • Be nice with the attorneys of the other side – at the end, after the deal, there is a high chance that you work with him on other transactions!!
Obrigado, André de Almeida almeida@almeidalaw.com.br