From LOI to closing: the ups and downs of execution, with Pierre G. SAGNOL, lawyer

Episode 6

 

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In this sixth episode, Thomas Colin (Alvo.Market) and Maxime Nicolas (Outmatch) tackle a decisive yet often misunderstood step: moving from the Letter of Intent (LOI) to closing. To unpack these legal and financial “ups and downs,” they welcome Pierre-Guillaume Sagnol, Partner at PwC Avocats, who shares his M&A experience and his perspective on the role of advisors in this key phase.

From deal maker to legal safeguard

The lawyer is no longer just a technician; they become a true transaction facilitator. Identifying the truly strategic issues, filtering out secondary points, and fostering compromise: this is the “deal maker” posture that enables transactions to succeed without unnecessary tension.

Due diligence: lifting the hood

Once the LOI is signed, the buyer enters the due diligence phase. Legal, tax, HR, IT, financial, or regulatory: each audit aims to uncover risks and sensitive points. These findings then feed into negotiations, whether to adjust the price, obtain specific warranties, or resort to warranty & indemnity insurance.

Warranties and final negotiation

Drafting the share purchase agreement crystallizes the issues. Duration of warranties, price adjustments, conditions precedent, role of the works council… all parameters that must be carefully defined. In this sensitive period, advisors help the parties preserve the relationship while protecting each side’s interests, especially in cases involving management transition.

A balancing act

Beyond technical aspects, a successful closing relies on trust and transparency. As Pierre-Guillaume Sagnol reminds us, a good deal is one where all parties walk away feeling they have gained something. More than an end point, closing marks the beginning of a new chapter — the company’s “season 2.”