With construction-related mergers and acquisitions booming, including private equity-backed transactions, M&A attorneys must understand the key differences between these types of deals and those in other industries, according to a recent article in Law360.
As the head of the Dallas Corporate practice, David Washburn explains "These types of deals are actually very unique." In many cases, buyers will seek larger escrows, holdbacks and indemnification protection. "If you bring in a lawyer who lacks familiarity with the industry," David notes, "they may assert that such a mechanism is objectively 'out of market,' when indeed it's not." Another issue which can be particularly perplexing for some private-equity backed buyers, especially those acquiring their first platform in the space, is negotiating control over the target's bonding program.
Read "What To Know To Cash in on the Construction M&A Boom" in its entirety.