Get Good Legal and Tax Advice, But These Advisors Are Not Party To Your Agreement

This may seem obvious, but it is often overlooked. Your lawyers and advisors work for you, and while their input is critical, the final decisions must always remain yours.

At the end of the day, the only true parties to the deal are you (and any co-shareholders) and the acquirer. You have been part of the discussions and negotiations. You understand which issues are sensitive, what has been agreed explicitly and what has been implied along the way. That context cannot be delegated.

The drafting of final agreements is one of the most sensitive stages in any transaction. It is essential to stay close to the detail and ensure that trust between both parties is maintained. It is remarkable how quickly that trust can be eroded at this stage, often just when it feels like alignment has been achieved.

How do you avoid this? Put in the work early. Ensure your heads of agreement are clear and comprehensive, addressing the difficult issues upfront rather than deferring them. Most importantly, do not allow your lawyers or tax advisors to become your negotiators. They play a vital role, but the direction of the deal must remain firmly in your hands.