Cha & Kwon Law Offices successfully completed the M&A of a domestic company. Company “A,” which is rapidly growing in the global content market including Korea, recently conducted an M&A, selling its shares. The entire process was approximately five months long with a worth of over 150 billion Korean won.

Since M&A is ultimately a process of buying and selling a company’s shares, the buyer and seller negotiate several times to evaluate the fair value of the company. And, to do so, “due diligence,” a measure to accurately analyze the company’s status, is essential. This not only includes financial and accounting but also legal due diligence to examine legal issues and the consequent degree of legal risks that have occurred or may occur to the company.

For legal due diligence, it is necessary to comprehensively review information on litigations conducted by the company thus far, as well as numerous contracts and hundreds or thousands of pages of relevant documents signed by the company. In addition, the overall business and management activities of the company, including the company's governance structure, business status, personnel management system, and employment principles, must also be reviewed.

Company “A” requested legal advice from Cha & Kwon Law Offices on the process of the sale of its shares in an M&A. Accordingly, Cha & Kwon Law Offices reviewed a vast amount of contracts, including stock sale agreement, and comprehensively analyzed the company's governance structure and litigation progress to effectively respond to the buyer's inquiries. Furthermore, Cha & Kwon Law Offices assisted the client with follow-up measures, such as proceeding with the general meeting of shareholders.

Cha & Kwon Law Offices has specialized expertise in corporate law with many years of diverse experience. Reduce legal risks in your business expansion through a comprehensive legal review from various perspectives by Cha & Kwon Law Offices.