Le Moniteur | Mergers and acquisitions involving the holder of an administrative contract: managing change and practical guidance
Public contracts, Mergers and acquisitions involving the holder of an administrative contract: managing change and practical guidance
While mergers and acquisitions (M&A) involving companies holding public procurement contracts have become a common feature of business life — even beyond the traditionally regulated sectors such as energy, infrastructure, urban services, and healthcare — Maxime Seno, partner, and Livia Elshoud, associate, discuss in Le Moniteur the strategic importance of identifying, early in the transaction process, the legal issues related to contractual continuity.
Key takeaways:
— In an M&A transaction involving a company holding public contracts, a change of control may have critical legal consequences that the parties cannot afford to ignore, unless they are willing to risk the loss of a strategic asset.
— A few simple best practices to avoid unpleasant surprises: distinguish between a change of contractor and a mere change in shareholding; review the specific administrative terms and conditions carefully; and, where the contract is silent, it is advisable—out of courtesy to the contracting authority—to notify the transaction, even retrospectively.
— The due diligence process should identify sensitive and/or strategic contracts, analyse the relevant clauses, and anticipate the risk of refusal. The transaction can then be structured or secured through conditions precedent and proactive dialogue with the public purchaser.
Read an excerpt from their analysis down below or the full version in Le Moniteur.
