Stage 1: Pitch
- Law firms must pitch to clients in order to be selected as their legal advisor (or one of their legal advisors) for a transaction (or a set period). Pitches usually focus on the firm’s capabilities, experience and the ways in which it can offer value for money.
Stage 2: Internal / External Checks
- Law firms must check they are not engaging in work on any projects or for any clients that may give rise to a conflict of interest.
- Law firms must thoroughly research clients to ensure they have not engaged in illegal activities such as money laundering.
Stage 3: Initial Instructions
- The primary objectives of the client must be ascertained.
- An appropriate fee structure and approximate timetable for the execution of the proposed transaction must be established.
Stage 4: Resourcing
- Managing transactions can involve coordinating different practice areas internally to source the required specialist advice for different elements of the transaction, whilst also coordinating external parties involved. Lawyers must help to determine which offices, teams, key employees and external parties will be required to execute the transaction.
Stage 5: Offer Process
- Clients may require protection throughout the bid (offer) process, for instance exclusivity for a set period.
- Exclusivity Agreement / Lockout Clause: buyers may request exclusivity over a proposed transaction for a period of time so that they do not waste time and money undertaking due diligence and negotiating only to lose out to another party.
Stage 6: Buyer Protection
Stage 7: Deal Execution
By Jake Schogger - City Career Series