Mergers and Acquisitions (M&A)
Are you facing a merger or acquisition? Is your company preparing for growth or seeking investors? M&A transactions present significant business opportunities—but only if every detail is carefully managed. Our practice specialises in providing comprehensive legal support for mergers and acquisitions.
Why is legal background important in M&A processes?
Mergers and acquisitions are not only complex from a business perspective, but also from a legal one. Negotiations, contract drafting, competition law compliance, employment law reorganisations, and risk assessments all require legal precision behind strategic decisions.
A flawed contract clause, an overlooked intellectual property issue, or an underestimated tax risk can lead to substantial financial losses, lengthy disputes, or even the failure of the transaction.
How can our M&A practice help you?
Our law firm’s dedicated M&A team supports clients—typically company directors, investors, and owners—to ensure their transactions are secure, transparent, and successful in the long term. Our services cover the full legal spectrum of mergers and acquisitions:
- Preliminary due diligence: Detailed legal review of the target company or your own company’s situation—risks, legal encumbrances, contracts, licences, IP rights, etc.
- Negotiation and contract drafting: Selecting the right structures, preparing purchase or merger agreements, and developing contractual safeguards.
- Structuring and tax matters: Choosing the optimal legal form, analysing and managing tax implications.
- Competition law compliance: Preparing official permits and notifications for the Competition Authority and other regulators.
- HR and employment law: Legal restructuring of the workforce, renegotiating collective or executive agreements.
- Post-transaction integration: Legally regulated transition, operational alignment, and execution of corporate law changes.
Why choose us?
One of the main strengths of our M&A practice is that we understand not only the legal details but also the business objectives. According to client feedback, our strengths lie in strategic thinking, rapid response, and our ability to communicate opportunities and risks clearly, even in complex situations.
We are well acquainted with the specificities of the Hungarian market, but we are also at home in international transactions—with English and Italian documentation, cross-border legal coordination, and managing multi-jurisdictional deals.
1. What is due diligence and why is it important?
Due diligence is the detailed legal, financial, and operational review of the target company. It helps to uncover hidden risks and provides a clear picture of the company’s real situation. Without it, you take on serious business and legal liabilities blindly.
2. How long does an M&A transaction take?
The process generally takes 3–6 months, but for more complex deals it can last 9–12 months. The duration is influenced by the size of the transaction, negotiations between parties, and regulatory approvals. Good preparation can significantly reduce delays.
3. What is the role of the law firm in the transaction?
The law firm accompanies the entire process from the initial letter of intent to closing. Its role is to identify risks, ensure contractual protection, and guarantee legal compliance. Additionally, it assists with tax, employment, and competition law matters.
4. When is it worthwhile to sell the company?
When the company is stable, profitable, and has growth potential—this is when its valuation is optimal. Many owners decide to sell due to generational change or a shift in strategy. It is important to prepare in time, as ad hoc sales rarely succeed.
5. What happens to employees after an acquisition?
Employment relationships typically remain unchanged, but may be modified during reorganisation or integration. Employment law must be adhered to, and proper communication is essential. A good transaction also considers employee security.
6. How involved should management be?
It is highly recommended that management actively participates in the process. They know daily operations best and play a key role in due diligence, negotiations, and integration. Buyers appreciate transparent and cooperative attitudes.
7. Is Competition Authority approval required?
Not always, but above certain market shares or revenues, it may be mandatory to approach the Competition Authority. Lack of approval can invalidate the transaction. Our practice helps determine whether notification is necessary.
8. How does M&A affect the brand and image?
This depends on the agreement between the parties—the brand may be retained, or a complete rebranding may occur. Integrating brands is key from a communications perspective. Managing the transition also affects customer and client trust.
9. What is the most common mistake in M&A?
The most common mistake is lack of preparation and excessive optimism. Many transactions fail because parties do not identify real risks in time. Realistic valuation, detailed documentation, and involving good advisors are crucial.
Our experienced team is at your disposal