Welcome to my thoughts on Mergers and Acquisitions (M&A). My name is Damian Lopez. I am the principal lawyer at DLPCLawyers.com. M&A activity is now complex. Specifically, we move from 2025 into 2026. The coming years bring serious problems for dealmakers. Companies need strong legal help. This is where Damian Lopez and his team offer real value.
High Money Costs and Price Gaps
The cost of money is a big issue. Interest rates are still high. Therefore, financing large deals is very expensive. Buyers struggle to get cheap loans. Consequently, the high cost affects how deals are set up. It makes Damian Lopez focus heavily on loan clauses. Moreover, prices do not match. Sellers still recall the high prices of 2021. In contrast, buyers are now more careful. They must factor in the higher cost of money. This difference in expected price stops many deals. Damian Lopez sees this disagreement daily.
It is vital to manage seller expectations honestly. My advice, therefore, is to use earn-outs. This fills the gap by paying later based on how the company does. Ultimately, smart structuring is the key to closing.
More Checks and Rules
Governments are watching M&A more closely. This is a big challenge. Regulators worry about monopolies. As a result, they are checking deals for anti-competition issues. This is especially true for tech and health care. Deals between countries also face bigger reviews. National security fears often stop or slow deals. In addition, Damian Lopez notes that the review process is longer now. It must include a deeper look at competition risks.
For this reason, Damian Lopez and his colleagues spend much more time on filing papers. This extra complexity is a cost and a danger. Not getting approval can lead to huge fines. Companies need a clear plan for approval. Thus, Damian Lopez stresses talking to regulators early.
AI Checks and Cyber Dangers
Technology is changing M&A. Buyers must now check a target’s AI tools deeply. Does the AI follow new privacy laws? Does the AI use any protected ideas wrongly? To illustrate, these are new questions for lawyers. Cyber risk is another huge problem. A target company’s weak security is a big flaw. For instance, a data breach after buying the company can destroy its worth. Indeed, Damian Lopez always includes a full cyber safety check.
In summary, Damian Lopez looks for hidden risks in the computer code. Connecting two company’s computer systems is also risky. Furthermore, Damian Lopez has seen failed connections ruin success after the merger. Strong guarantees about cybersecurity are now essential. This focus on digital assets defines M&A in 2025.
Good Practices (ESG) and Global Trouble
Investors care about ESG: Environment, Social, and Governance. Companies with bad ESG records are less wanted. Buyers check a company’s ESG record. They look at its pollution and labor practices. Consequently, Damian Lopez helps clients find and reduce these risks before the deal closes.Globally, political risk is high. Wars and trade conflicts cause instability. Therefore, a good deal today might fail tomorrow. Supply chains are often broken. This uncertainty makes planning hard. Specifically, Damian Lopez advises clients to carefully check country-specific risks. The legal papers must allow for flexibility. Finally, Damian Lopez sees a future where M&A is pickier. It will focus on smart, well-funded deals. Damian Lopez is here to guide your business through these tough times.