M&A Transactions: The Crucial Period Between Signing and Closing

The journey from agreeing to a merger or acquisition to its finalization involves a critical phase that often determines the transaction's success: the interim period.

This period, spanning from the signing of the agreement to the closing, is when parties are legally bound, yet control of the company remains with the seller. While the buyer does not yet manage the company, they have a significant interest in ensuring its value and operational integrity do not diminish before the transfer of ownership.

Navigating this interim period requires a clear delineation of rights and responsibilities. How these are regulated in the contract can significantly influence whether the transaction proceeds smoothly or leads to future disputes. This phase underscores the importance of meticulous planning and clear communication between buyer and seller to safeguard the deal's intended outcome.