Mergers and acquisitions in Canada might sound like a complex game of corporate chess, but don’t worry — you can checkmate your way into this thriving legal field. If you're a law student or lawyer curious about how to get into mergers and acquisitions in Canada, then this article is for you. Here, we'll break down the steps and tools to close the deal on your career as a future M&A lawyer.
What are the steps on how to get into mergers and acquisitions in Canada?
Getting into mergers and acquisitions (M&As) will somewhat depend on where you are right now in your career. If you’re still in law school, you can start learning about M&A laws to prepare yourself ahead. It would also help to start building connections with those who are already in the field.
But even if you’re already a lawyer who wants to work in a different practice area, there still are a lot of opportunities for growth to choose from. At most, going back to learning would be your best option. This can either be in a formal setting or through mentoring.
It may also depend on what area of M&A you want to focus on. We'll later see that a successful M&A transaction involves different sectors, legal areas, and professionals — which you can consider after deciding to get into M&A.
As to what an M&A lawyer exactly does, here’s a short clip as an overview:
There’s no other way to get inspired to get into M&A than by looking at the best M&A lawyers in Canada as ranked by Lexpert.
Law student: How to become an M&A lawyer
If you’re still a law student, setting your goal of becoming a future M&A lawyer would be a sound plan. Although choosing a specialization at this early stage is a good thing, a lot may still happen along the way that may change your mind.
Nevertheless, working on your set goals for now is beneficial. There are several opportunities if you’re still in law school to help you in getting into M&A, such as:
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enlisting in M&A-related courses: during your upper years, where you’ll be given the liberty to choose courses, try to learn in M&A courses and other related ones, such as competition law, corporate finance, corporate securities, labour and employment law, taxation, among others
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working with M&A lawyers: you can apply during your law school’s on-campus interviews, specifically applying for law firms that are in the field of M&A; this also includes joining in externships, summer internship programs, and legal aid programs where you’ll be able to learn directly from practicing lawyers
Lawyer: How to specialize in the field of M&A
Shifting a specialization in your legal career might feel like a big leap of faith — because it really is. But with these suggestions, you may be able to shift your legal career with less usual problems:
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enrolling in graduate studies: many educational institutions offer M&A graduate studies; for example, some law schools offer LLMs with a concentration on business law, which covers M&A-related topics; looking at Master of Business Administration (MBA) offered by universities is also a nice choice
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working for an M&A lawyer: being mentored by a seasoned M&A lawyer or working under a law firm with a specific M&A group would be a great opportunity to both learn, practice, and apply what you got
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networking with other M&A lawyers: building a relationship with other lawyers who are also into M&As is another opportunity to work in this legal area; things like putting yourself out there by joining lawyers’ associations in Canada or attending events that discusses updates on M&A law would be great
M&A sub-areas to be on the lookout for
M&A law is not a secluded area of law; instead, lawyers from different practice areas work together to successfully close an M&A deal. Below, we’ll discuss some general roles that you may want to play, starting from the initiation of an M&A deal until it’s closed.
Conducting due diligence
Because of the clear importance of due diligence before proceeding with an M&A deal, there are now law firms and organizations who offer to conduct specialized due diligence for others. This may be another option for you if you want to practice in M&A law.
As such, one way of getting into mergers and acquisitions can be through your specialization as a lawyer, or working in a law firm, who conducts due diligence. In this role, you’ll be:
- gathering crucial and relevant information about the other entity
- combing through countless financial and organizational files
- doing risk assessments based on the information gathered
In another angle, due diligence is not only constrained on M&A transactions. This is why a career in due diligence is also worth considering.
Employment and labour law
After everything’s said and done, an M&A deal will be closed and both parties are expected to be happy. However, the work doesn’t end there, as the new corporation will now undergo the integration process.
An important aspect of this integration is labour and employment, such as making sure that employees are in place for the resulting entity. This involves laying off some employees or retaining others but still following Canadian labour laws.
More so, the resulting entity’s obligation will also depend on whether the deal is an asset- or share-based transaction. In all of these, parties would need a labour and employment lawyer.
Finance and banking law
Admittedly, M&A deals are capital heavy. This makes lawyers who work for banks and financial institutions in-demand as some point, whether in drafting the transaction or after its closing.
Banking lawyers are usually part of a party’s M&A team, either of the acquiring or targeting corporation. They usually help with the financial aspects of the deal, plus accessing banks and financial institutions for capital needs.
Taxation law
Tax laws have a huge impact when it comes to structuring M&A deals. This is another area to focus on. You’ll be hired to ensure that there will be a minimal tax impact on the resulting entity after the deal is completed.
Tax lawyers in M&A are highly relevant if it involves a foreign corporation who wants to establish its presence in Canada. For instance, parties must choose the right vehicle or transaction, not only to minimize taxes, but also to take advantage of other tax benefits.
As taxation will not go anywhere soon, focusing on being an M&A lawyer whose expertise is in tax laws is a sound choice.
What traits and skills should a person have to get into M&A?
As a lawyer working in the field of M&As, you need to have certain practical and legal knowledge, skills, and experience to prosper in this career. These include:
- communication and corporate skills
- knowledge in business and corporate law
Watch our 2023 interview with a Lexpert-ranked M&A lawyer to give you more ideas about this field of lawyering:
Head over to our page on Finance and M&A Special Edition for more resources on M&A lawyers and the legal practice of M&A.
Communication and corporate skills
Being able to convey corporate legalese and jargon to your clients would be a great skill to have if you want to work in M&A. Whether it’s talking to high-level officials of the corporation or not, communication and corporate skills are a must.
This would also come in handy when reaching out to the other party in the M&A deal. Making your point in a clear manner, when effectively conveying what the deal is all about, would be beneficial on your side.
Knowledge in business and corporate law
At the very least, you need to know about Canadian corporate law; this includes how corporations are born, the different ways they operate, and other legal consequences of a corporation. Also, there are many facets of M&A that you’ll be dealing with that touch on other legal practice areas, such as:
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competition and antitrust law: aside from regulating the conduct of corporations as to their products and services, Canadian competition law focuses on regulating M&A deals
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laws related to commercial contracts: at its very core, an M&A transaction is a contract between two corporations, where law on commercial contracts will apply, not only where there’s already a dispute, but also to avoid any from arising
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securities law: especially for M&As involving public corporations, Canadian securities law would be involved in the M&A transaction; this is somewhat a highly specialized area of corporate law
Knowing corporate law, or any of these related laws, would be your strongest suit in getting into M&As. In some cases, where you’ll be specializing in may also depend on the institution you’re working for.
How to get into mergers and acquisitions: closing your deal into this field
Aligning your chess pieces well on the board will help you get into the field of mergers and acquisitions. This is especially true, since there’s a lot more to the legal practice of M&A, aside from your usual due diligence and corporate synergies. With the right preparation and mindset, climbing up that corporate ladder is well worth taking. Whether you're a law student who wants to get into this field after being admitted to the bar, or a lawyer who wants to shift to a different focus, talking to an M&A lawyer is never a wrong idea.
Bookmark our Legal FAQs page for other resources to help you with these steps on how to get into mergers and acquisitions.