Legal Advice & Business Risk
Working through a transaction requires sound legal advice and excellent underwriting. Within the private equity community it has been my experience that these two skill sets are learned in stages throughout your career. Initially the focus is on the finance and accounting skill set required to evaluate a transaction, and over time (assuming you do not burn out) the focus shifts to the legal documentation required to consummate the transaction.
It has been my opinion that these two separate but incredibly valuable skill sets should be taught in conjunction, which is why the Leveraged Buyout Video Series at ASimpleModel.com introduces transaction-related legal documentation.
An article in the FT argues that M&A lawyers are increasingly expected to provide insights beyond the letter of the law, and that they should have the capacity to evaluate business risk as well.
“Public company boards often have to make decisions based on imperfect information,” he says. “A good lawyer should be able to say with conviction what they would do in the board’s position and to do that they cannot answer just on a legal basis, it has to be done with management of business risk in mind.”
Source: Ortenca Aliaj | “Deals lawyers are masters of seeing the next move” | The Financial Times | 12/9/2019 | Visit