Companies and employees are not the only ones to be affected by the Covid-19 pandemic. Investors and their holdings are also feeling the impact – and they need a detailed insight into the current state of affairs. Urgently.
There are more and more situations in the current climate in which contractual agreements cannot be met or need to be renegotiated. Think of the relationship with a property owner, supplier, purchaser or financier. Sometimes, drastic action, such as refinancing or reorganising, is needed quickly. In every case, it is hugely important that you have a detailed insight into contractual positions, plus all the other information you require to be able to take quick and well-considered decisions. Since March this year, the Legadex M&A team has been deeply involved in situations like these. This is what we do…
1. Contract review: analyse key rights and obligations
There are a number of specific contract clauses that, in the context of Covid-19, are of great importance for risk analysis, renegotiation and deciding the extent to which a company is bound by obligations. These clauses are force majeure, guarantees and indemnities, compensation agreements, penalty clauses, liability clauses and cancellation options. For a detailed overview of these agreements, please see our advice on contract reviews.
The Legadex team conducts a rapid review of contractual rights and obligations, which we then lay out in clear reports to the company, lawyer or financial advisor. For large contract volumes, we use Data Analytics software to accelerate the review process and save costs.
2. Virtual Data Rooms and the Collaborate environment for refinancing, reorganisation, demerger and transaction
Here we set up a Virtual Data Room (VDR) environment within 24 hours. This VDR can be used as part of a refinancing project, for demergers, for transaction or as part of a reorganisation. At present, we are doing all our work online and our team is immediately available to collect, enter and check data. We follow advanced scenarios that apply to the situation at hand.
As well as a VDR, we can also set up a complete Collaborate environment in less than 24 hours. Here we not only share data with you and your advisors, but also actively collaborate with you using the blog functionality, workflows and detailed reports.