Is there a corporate attorney available? Could you tell me about the ways an M&A is carried out?

Hello. I am a corporate attorney at Daeryun Law LLC. You have inquired about M&A-related matters.

An M&A can be broadly divided into three approaches: open competitive bidding, limited competitive bidding, and individual negotiation.

First, open competitive bidding is a method of publicly announcing the sale, and anyone interested in acquiring can participate and conduct negotiations.

Among the various acquisition candidates, you can select a buyer, and it has the advantage that you can maximize the sale price through competition.

However, because the transaction procedure is complex, swift progress is difficult, and because the company's sale becomes publicly known, it can negatively affect business, which is a disadvantage.

Next is limited competitive bidding.

This involves receiving letters of intent from a small number of interested candidates and conducting negotiations.

Through an efficient sale process, negotiations can proceed swiftly, which is an advantage.

However, because negotiations are conducted with a small number of acquisition candidates, it can be disadvantageous in creating a competitive dynamic compared to open competitive bidding, which is a disadvantage.

Finally, there is individual negotiation. This is a method of negotiating one-on-one with a party interested in acquiring.

Because there is no negotiation process through competition, a swift and efficient sale is possible, and it has the advantage that confidentiality is easily maintained.

However, because it is a negotiation without a competitor, it has the disadvantage that difficulties may arise in the negotiation.

These M&A approaches each have their own advantages and disadvantages, so it is good to judge and decide according to the company's situation.

In order to defend against legal risks, we recommend that you prepare with the help of a corporate attorney.