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Commercial Awareness Discussion
The M&A Case Study Experiment - Part 1
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<blockquote data-quote="eleven14og" data-source="post: 130022" data-attributes="member: 18458"><p><strong>Why do you think Digion wants to buy Immersive?</strong></p><p>Buying Immersive can help Digion expand into the EU faster than organic growth. Digion is interested in Leon Alexander and Maria May. This acqui-hire can bring talent to Digion. It can also reduce competition as Immersive is popular among game developers.</p><p></p><p><strong>How would you advise Elena handle the situation with Tristan?</strong></p><p>Elena can enter into an NDA containing a non-solicitation clause with Immersive. To better mitigate risk, Elena can choose not to hire Tristan because of his behaviour.</p><p></p><p><strong>What is the purpose of Clause 5 in Document 3?</strong></p><p>Clause 5 provides that certain parts of the contract will only come into force if and when agreed conditions are met. This is to prevent the buyer entering into a bad deal if the seller do not meet certain conditions. </p><p></p><p><strong>In Clause 7, note the phrase, '<em>The Seller’s liability under the warranties and indemnities shall be subject to limitations</em>.' Suppose you were the lawyers acting for the Seller, what could you do to limit the Seller's liabilities? Why is this important?</strong></p><p>I would ask to insert clauses to specify the limitations of the Seller's liabilities.</p><p></p><p><strong>Why could it be important to Digion that '<em>the courts of England have exclusive jurisdiction to settle any dispute</em>'?</strong></p><p>Digion's headquarter is in London so the company is more familiar with English law. It can also save Digion time and cost as disputes will be resolved in their home jurisdiction.</p></blockquote><p></p>
[QUOTE="eleven14og, post: 130022, member: 18458"] [B]Why do you think Digion wants to buy Immersive?[/B] Buying Immersive can help Digion expand into the EU faster than organic growth. Digion is interested in Leon Alexander and Maria May. This acqui-hire can bring talent to Digion. It can also reduce competition as Immersive is popular among game developers. [B]How would you advise Elena handle the situation with Tristan?[/B] Elena can enter into an NDA containing a non-solicitation clause with Immersive. To better mitigate risk, Elena can choose not to hire Tristan because of his behaviour. [B]What is the purpose of Clause 5 in Document 3?[/B] Clause 5 provides that certain parts of the contract will only come into force if and when agreed conditions are met. This is to prevent the buyer entering into a bad deal if the seller do not meet certain conditions. [B]In Clause 7, note the phrase, '[I]The Seller’s liability under the warranties and indemnities shall be subject to limitations[/I].' Suppose you were the lawyers acting for the Seller, what could you do to limit the Seller's liabilities? Why is this important?[/B] I would ask to insert clauses to specify the limitations of the Seller's liabilities. [B]Why could it be important to Digion that '[I]the courts of England have exclusive jurisdiction to settle any dispute[/I]'?[/B] Digion's headquarter is in London so the company is more familiar with English law. It can also save Digion time and cost as disputes will be resolved in their home jurisdiction. [/QUOTE]
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