Canadian Lawyer

September 2019

The most widely read magazine for Canadian lawyers

Issue link:

Contents of this Issue


Page 49 of 55

FEATURE 50 MERGERS & ACQUISITIONS WHEN COMPANIES think about buying or merging with other companies, top-of- mind considerations are likely determining the value of the asset. What is the brand recognition of the asset worth in the Considering employees during M&A With acquisitions come people, and with them matters of salaries, severance, unions and other vendor and acquiror considerations marketplace? Is the vendor's selling price fair? Has due diligence been done? Before either party signs on the dotted line, however, it's worth considering the employees in the company or division being purchased. An acquisition can mean assuming the costs of those employees; assessing their value to the business (and whether to keep them); and ensuring that valued employees move over to the acquiror. And a unionized workforce has its own unique set of considerations. First things first The first matter for an acquiror to decide "is what they need to do to run the business going forward," says Brenda Gosselin, a corporate and securities lawyer at Goodmans LLP in Toronto, whose practice includes M&A and corporate restructuring. Lawyers must look at a client's big picture: who they are, what they are acquiring and what their vision is, "because that's ultimately going to drive how the deal is structured and then what gives rise to the various considerations." Whether the deal is a share sale or asset sale affects an acquiror's responsibilities

Articles in this issue

Links on this page

Archives of this issue

view archives of Canadian Lawyer - September 2019