Practical Law
The Board’s Role in M&A Transactions
May 2014
More M&A activity over the next 18 months is expected due to continuing improvements in economic conditions, significant cash reserves in corporate hands, increases in hedge fund activity and investor pressures for growth in shareholder returns.
Whether a potential M&A transaction is initiated or welcomed by the company to be acquired or results from an unwelcome suitor’s offer, the board plays a critical role. The board must evaluate whether the transaction is in the best interests of the company and its shareholders such that it should be pursued or rejected.
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