M and A Vocabulary Bootcamp: Understanding the Structure and Language of a Deal
Про розуміння структури та мови угоди розповіла юрист, керівник Центру правничої лінгвістики Вищої школи адвокатури НААУ, викладач спеціалізованого курсу «Юридична англійська» — «Legal English» з особисто розробленими програмами навчання — Contract Law, Company Law, Legal Writing Людмила Колодник під час заходу з підвищення професійного рівня адвокатів, що відбувся у Вищій школі адвокатури НААУ.
Матеріали заходів
12.09.2025

Лектор докладно проаналізувала разом з учасниками розуміння структури та мови угоди, а саме:

1. Introduction: Why Structure Matters.

1.1. Навіщо знати структуру угоди?

1.2. M&A як процес, а не подія: від зацікавленості до інтеграції.

2. The Deal Structure at a Glance.

2.1. Типові етапи M&A-угоди.

3. Key Terms and Phrases per Stage.

3.1. Ключова термінологія за темою заходу.

4. Asset Deal vs Share Deal: Structural and Linguistic Differences.

4.1. Що купується: активи чи акції?

4.2. Лексика: assign vs transfer, novate contracts, assume liabilities.

4.3. Структура речень у договорах.

5. Analysing a Real Clause: From Structure to Meaning.

5.1. Розбір прикладу з SPA.

6. Recap & Consolidation.

6.1. Інтерактивна перевірка знань по етапах та термінах.

6.2. Запитання до учасників: які терміни/етапи були новими.

У рамках характеристики структури та мови угоди акцентовано на наступному:

1. Introduction: Why Structure Matters.

1.1. Навіщо знати структуру угоди?

Mergers and acquisitions (M&A) are complex, involving many parties.

Mergers and acquisitions involve many issues, including:

  • Corporate governance.

  • Form of payment.

  • Legal issues.

  • Contractual issues.

  • Regulatory approval.

M&A analysis requires the application of valuation tools to evaluate the M&A decision.

1.2. M&A як процес, а не подія: від зацікавленості до інтеграції

Definitions of Mergers and Acquisitions (M&A):

  • Mergers and Acquisitions refer to the processes by which companies combine with or purchase other companies.

  • A merger occurs when two companies join to form a single new entity, while an acquisition happens when one company buys another, which may continue to exist independently.

  • M&A activities are typically aimed at achieving growth, gaining competitive advantage, expanding market share, or creating synergies.

M&A is a journey, not a single moment. Each stage is critical to success:

  1. Initial Interest / Target Identification.

  2. Due Diligence.

  3. Negotiation and Signing.

  4. Closing.

  5. Post-Merger Integration.

2. The Deal Structure at a Glance.

2.1. Типові етапи M&A-угоди

Typical Stages of an M&A Transaction:

  1. Strategy & Target Identification – Define objectives, identify potential targets, and assess strategic fit.

  2. Initial Contact & Preliminary Negotiations – Approach the target, exchange information, sign a Non-Disclosure Agreement (NDA), and issue a Letter of Intent (LOI).

  3. Due Diligence - Comprehensive review of financial, legal, tax, and operational matters.

  4. Deal Structuring – Decide on the type of transaction (share purchase, asset purchase, merger, amalgamation) and financial terms.

  5. Negotiation & Documentation – Draft and negotiate the Share Purchase Agreement (SPA) and ancillary documents, including warranties, indemnities, and covenants.

  6. Regulatory & Shareholder Approvals – Obtain necessary consents from regulators, competition authorities, and shareholders.

  7. Closing – Transfer ownership, execute final contracts, settle payments, and release escrow (if applicable).

  8. Post-Merger Integration - Align operations, management, and culture; realize synergies.

3. Key Terms and Phrases per Stage.

3.1. Ключова термінологія за темою заходу

  • A matter a general term used to describe almost any kind of legal work done by a lawyer;

  • A deal a commercial transaction, usually large and rather complicated;

  • A transaction a commercial arrangement in which several parties engage in business dealings;

  • A case usually a matter which is, or will soon be, in litigation;

  • An action a lawsuit brought in a court;

  • Merger – злиття;

  • Acquisition – поглинання;

  • Target Company – цільова компанія;

  • Due Diligence – аудит компанії;

  • Share Purchase Agreement (SPA) - договір купівлі-продажу акцій;

  • Asset Purchase Agreement (APA) - договір купівлі- продажу активів;

  • Letter of Intent (LOI) – протокол про наміри;

  • Confidentiality Agreement (NDA) – угода про конфіденційність;

  • Valuation – оцінка вартості;

  • Closing – завершення угоди;

  • Target Company – компанія- ціль (цільова компанія);

  • Clearance –узгодження (регуляторне);

  • Conditions Precedent – відкладальна умова;

  • Takeover Bid – пропозиція про поглинання;

  • Joint Venture – спільне підприємство;

  • Assets– активи;

  • To Gain Control – отримати контроль;

  • Hostile Takeover – вороже поглинання;

  • Friendly Takeover – дружнє поглинання;

  • Non-Compete Clause – умова про неконкуренцію.

4. Asset Deal vs Share Deal: Structural and Linguistic Differences.

4.1. Що купується: активи чи акції?

  1. Asset Deal: The buyer acquires specific assets and liabilities (e.g., property, equipment, contracts, IP). The legal entity of the seller remains.

  2. Share Deal: The buyer acquires shares of the company (equity). The buyer becomes the new owner of the legal entity, with all its assets and liabilities.

4.2. Лексика: assign vs transfer, novate contracts, assume liabilities

Assign vs Transfer:

  • Assign a contract/right - transfer contractual rights to another party.

  • Transfer assets - convey ownership of tangible or intangible property.

  • Assume liabilities - the buyer agrees to take responsibility for certain debts or obligations.

4.3. Структура речень у договорах

Asset Deal clauses: “The Seller hereby transfers and assigns to the Purchaser all rights, title and interest in the assets…” Focus on transfer of ownership and assumption of specific liabilities.

Share Deal clauses: “The Seller agrees to sell, and the Purchaser agrees to purchase, all issued and outstanding shares…” Focus on share purchase and transfer of corporate control.

Novation of Contracts:

Definition: Novation is the process of replacing one contractual party with another, with the consent of all parties involved. It creates a new contract, extinguishing the original one.

Novation - transfer of both rights and obligations (full substitution of one party with another).

Example in M&A:

  • If Company A sells part of its business (asset deal), contracts with suppliers may need to be novated to Company B (the buyer).

Clause example: “With effect from Completion, the Seller shall procure that each Assigned Contract is novated to the Purchaser, and the Purchaser shall assume all rights and obligations thereunder.”

Novation is means by which one party to a contract totally removes himself from the contract by transferring not only all the benefits conferred by contract but also all the obligations. The third party replaces the original party as a party to a contract.

5. Analysing a Real Clause: From Structure to Meaning.

5.1. Розбір прикладу з SPA

Clause Example (from a Share Purchase Agreement – SPA): “With effect from Completion, the Seller shall procure that each Assigned Contract is novated to the Purchaser, and the Purchaser shall assume all rights and obligations thereunder.”

Step 1 – Identify Structure:

  • Opening phrase (time trigger): With effect from Completion - defines when the obligation begins.

  • Main subject & obligation: the Seller shall procure - Seller has the duty to ensure something happens.

  • Object of obligation: that each Assigned Contract is novated to the Purchaser - the key legal act (novation).

  • Consequence for Purchaser: the Purchaser shall assume all rights and obligations thereunder - transfer of rights & liabilities.

Step 2 –Meaning in Plain English:

  • Once the deal is completed, the Seller must ensure that all contracts chosen for transfer are legally novated to the Purchaser.

  • After novation, the Purchaser takes over both rights and responsibilities under those contracts.

  • The Seller is released from further liability for those contracts.

Step 3 – Legal Effect:

  • Protects the Purchaser by ensuring continuity of contracts.

  • Protects the Seller by releasing them from future obligations.

  • Ensures that business operations continue smoothly after Completion.

6. Recap & Consolidation

Clause Interpretation:

Read the clause and answer the question. “The Seller shall indemnify the Buyer against any losses arising out of breaches of representations and warranties made herein, including but not limited to tax liabilities and undisclosed debts.”

Question: What obligations does the seller have under this clause?

The seller is obligated to indemnify (i.e., compensate) the buyer for any losses resulting from breaches of representations and warranties, including tax liabilities and undisclosed debts.

Error Correction – Redrafting Clauses:

Find and correct the mistake in this clause: “The Purchaser will purchase all of the company’s liabilities and assets subject to completion of the contract agreement.”

Task: Identify at least one issue with the clause and redraft it for clarity and precision.

Issue:

  • It's unusual and commercially unwise to intentionally purchase all liabilities.

  • The phrase “contract agreement” is redundant.

  • “Subject to completion” needs more clarity. Redraft: “The Purchaser shall acquire all of the Seller’s assets, and only specified liabilities, subject to the successful completion of the Share Purchase Agreement.”