How law firms can navigate the predicted surge in M&A and transactions in the oil and gas industry

Why this matters to attorneys

To successfully navigate many of these impending transactions, companies will engage the services of law firms.  From setting up the deal, conducting due diligence, to closing – it can be a complex process.

However, taking on a client in the oil and gas industry on deals such as these requires that law firms have significant resources in place to be able to complete all the necessary work that is required for a successful and compliant transaction.

Unfortunately, most law firms aren’t set up in a way to take on this range and volume of work.  Moreover, with a short-term spike in M&A and transaction activity predicted soon, these firms only have a small window in which to scale their services.  Even if they were able to hire the resources and set up the internal firm infrastructure needed to complete the work, those positions may then be no longer needed and could need to be eliminated once this period of uncertainty and consolidation ends.  This is a key reason why law firms hesitate to take on additional work – and miss out on important revenue-generating opportunities.

If this increase in activity is temporary as predicted, a smarter decision would be for law firms to outsource such activities.  Then once deal levels return to normal, there is no need to scale back the firm and lay off added staff.

CT is the experienced partner you need

To support this increased workload, a trusted service provider like CT Corporation can provide expert support, particularly for time-consuming due diligence work. 

Once an offer has been accepted on a global corporate transaction such as in a merger or during an acquisition, an exhaustive due diligence process begins.  Due diligence aims to confirm or correct the acquirer’s assessment of the value of the target company, verify the legal and administrative standing of the organization, and understand how and with whom they do business through a detailed examination and analysis of every aspect of the company’s operations.  A single missing document piece of vital information can have significant impacts on a global deal.

Attorneys assisting clients on global transactions have the added challenge of conducting this work in unfamiliar foreign jurisdictions and obtaining the right document and needed information in an efficient manner.  They must be able to provide as much information as they can about a particular deal to their clients in order to be able to advise their clients with sound recommendations on how best to proceed.

Outsourcing this and other important processes allows your law firm to take on additional work, without the added cost of hiring in-house or full-time staff to complete the support work necessary for a given deal.  More importantly, a partner can be engaged on an as-needed ad-hoc basis when and where the workload increases.

During these unpredictable times, you can count on CT Corporation’s expertise and expert support – every step of the way.