Mergers and acquisitions (M&A) are rarely simple, and M&A transactions in the automotive industry are no exception. With intricate global supply chains, fierce competition, unending technological advancements, OEs and a century-plus history, automotive M&A transactions present a host of complex and unique challenges. If a deal could be in your future, modest changes to your current operations may help avoid predictable issues so you can focus on what matters. Here are a few examples:
- Reconsider routine commercial arrangements. Whether structured as an asset or equity deal, you’re likely to confront contractual obstacles. From transfer restrictions, insufficient license allocations or an absence of prearranged transition assistance, you can avoid future headaches and significant costs by negotiating upfront – when you have leverage – the rights and flexibility you may need.
- Spring cleaning. Assess the state of your corporate governance and other key business records and policies. If you’ve inadvertently put off preparing necessary filings or governance documents, reviewing critical policies (employment, IP and data security to name a few) or updating your forms library, now is the next best time.
- Scout your bench. Ask who the essential members of your internal deal team will be and what sort of stress that might put on your organization. Determine if there are moves you can make today to help shoulder these burdens, including through reallocating responsibilities, training or hiring for specific expertise.
A strong internal and external team are vital to navigating these and many other issues. Warner’s experienced automotive attorneys are ready to help you efficiently plan for and complete your deal.
For more information from Warner’s Automotive Industry Group, click here.
Attorney Spotlight - Daniel Bonucchi
Dan Bonucchi is an associate in Warner’s Detroit and Macomb County offices. Originally from the Detroit area, and a self-proclaimed car guy, Dan has always had an affinity for the automotive industry.
Dan joined Warner in 2019 after working most recently as in-house counsel for a global automotive manufacturer and supplier where he led various merger and acquisition (M&A) activities and counseled all levels of the business on commercial contracting matters and general day-to-day operations. Dan’s experience with automotive M&A transactions includes acting as both outside and in-house counsel and as a member of the transition and integration team for an acquired business. This unique perspective gives Dan a comprehensive and personal understanding of M&A transactions from the inside out.
Today, Dan remains involved in M&A work in the automotive industry, among others, and advises automotive suppliers on corporate governance, supply chain and other general corporate and commercial matters. When negotiating commercial agreements, Dan remains mindful of potential implications for M&A deals and considers provisions that are frequently overlooked but that often lead to M&A delays and avoidable expenses. Dan was named to Best Lawyers® 2021 Southfield Corporate Law and Mergers and Acquisitions Law “Ones to Watch” List.
Check out Dan’s full bio and his profile on LinkedIn.
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