Bass, Berry & Sims attorney Tatjana Paterno authored an article for CFO.com discussing how CFOs can contribute to five key practices integral to successful deals in today’s mergers and acquisitions (M&A) market. The list aims to assist both buyers and sellers to produce more streamlined transactions overall.
“CFOs can add significant value to an acquisition process… by clarifying cash-free/debt-free terms, defining working capital adjustments, managing RWI costs, confirming exclusivity terms, and engaging in early diligence,” Tatjana stated, enumerating the five key practices.
In discussing considerations for a well-crafted Letter of Intent (LOI), including strategies on how to optimize agreements, Tatjana focused on the opportunity for CFOs to adding value in acquisitions, positioning them for success and providing steps that will help them navigate uncertainty.
“Start by reviewing your next LOI draft with these strategies in mind and involve your team to ensure alignment. In a market where every dollar counts, a well-structured LOI can mean the difference between a deal that drives growth and one that drains resources,” advised Tatjana.
The full article, “5 Key LOI and Purchase Agreement Strategies CFOs Must Master,” was published by CFO.com on June 17 and is available online.
This article is the first in a four-part series published by CFO.com providing CFOs with essential legal updates and an examination into key legal issues that impact the financial health of a business, outlining practical strategies to navigate and manage risks in a CFO’s daily responsibilities. The second installment, “Growth Mode: Key Loan Agreement Provisions During an Acquisition,” was authored by Bass, Berry & Sims attorney Katie Smalley and published on July 16.