F2F Class Notes 1st November (Celeste) [2-3]

Original

Obviously, there are a lot of factors which can affect the completion of one cross-border acquisition transaction. Particularly, interaction is one of the important factors and to some extent it may be the most important factor. Apparently, if the seller finds out that there are amounts of obstacles when he communicates with one potential purchaser, then it is reasonable that he refuses to further negotiate with this purchaser and turns to another one, who has no such communication problem with him, and vice versa. As a result, if both parties can efficiently and accurately communicate with each other, it can be beneficial to both sides, otherwise the whole transaction will be time-consuming. However, due to the differences between two parties in various aspects, e.g. culture, education level and language skills, the potential purchaser and seller always trouble by the question of how to communicate with each other in a more efficient way and avoid misunderstanding during the whole process.

Against that background, the traditional law firm, which only provides legal services, such as reviewing the material contracts of the target company, drafting contracts to make sure everything set in stone and providing legal advice, are not sufficient to meet the requirements of cross-border acquisition transaction now. As international law firms, nowadays, they usually play a more divers role than before, which means except the professional legal services, they will also provide other value-added services, such as to assist their clients to communicate with the counterparty throughout the whole process of the acquisition transaction. The new trend is that the ability of the law firm to provide such services also constitutes an important index, when the clients choose the legal counsel for their transactions.

Edited

Obviously, there are a lot of factors which can affect the completion of one cross-border acquisition transaction. Particularly, interaction is one of the important factors and to some extent it may be the most important factor.

If the seller comes across many huge communication obstacles with a potential buyer/purchaser, it is understandable that he cuts ties and negotiations with that buyer and turns to another, who has no such communication problems, and vice versa.

As a result, if both parties can efficiently and accurately communicate with each other, it can be beneficial to both sides/parties, otherwise the whole transaction will be time-consuming. However, due to the differences between two parties in various aspects, e.g. culture, education level and language skills, the potential purchaser and seller are always troubled by the question of how to communicate with each other in a more efficient way/manner and avoid misunderstanding during the whole process.

Previously traditional law firms only provided legal services. But now, these law firms are not sufficient to meet the requirements of cross-border acquisition transactions.

Nowadays, international law firms usually play a more diverse role than before, which means they will also provide other value-added services, such as assisting their clients to communicate with the counterparty throughout the whole acquisition transaction process.

Times are changing and clients now choose their law firm not only for their legal counsel but also for their ability to provide communication support and services.

Pronunciation

various ( vare – ee – us )

usually ( U – zhull – ee )