Many companies deal in mergers and acquisitions. Two companies merge into one because they are more valuable together than when separated. This usually happens when one company isn’t faring as well as the other, and sells. It is typically called a merger when two companies of the same size collaborate and become one, but the same term is sometimes used when one acquires another to make the deal sound less negative.

Because these situations can sometimes be hostile, having in-house counsel can help smooth the transition. Both sides in the deal will have different opinions on the worth of the target company. The buyer is trying to acquire the target company at the lowest price they can. On the other side, the seller tends to value the company at a higher price.

When companies have in-house counsel as opposed to outside counsel helping with a merger or acquisition, they are more likely to get what they want out of the deal. In-house counsel is integrated into the company and its culture, so naturally they want what is best for it. They will assist in determining the true worth of the company because they are invested.

For the company being sold, in-house counsel can handle gathering documents needed for the other company’s legal team such as the finances and projections, ownership interests, outstanding contracts, and potential legal liabilities. By studying these documents before handing them over, in-house counsel can find any legal issues that could be problematic for the transaction.