The use of legal translation services has drastically increased for over the years with businesses expanding globally to increase their global footprints and maximize their revenue streams. Law firms have become one of the key users for translation services as they have large number of global clients that they represent. Mergers & acquisitions which is also known as M&A is one area where legal translation services are frequently required by law firms.
Before we dig further into M&A, it is essential to understand what is M&A and why are translation services so relevant in this process. M&A is a process in which one business either joins or merges their operations with any other business by combining together (merger) or if a business decides to purchase or buy another business to become a larger business (acquisition). When international business organizations merge or if one business is acquired another global business, the need for translation services arise. The process often known as due-diligence where legal professionals are assigned to review wide variety of documents to analyze the success factor of the deal.
Why is there a need for translation services during Mergers & Acquisitions?
Compliance checks and due diligence is one of the key reasons why legal translation services are required during M&A. A business that is purchasing another business to takeover will make sure that they carry out their due diligence before taking over. During this process, a lot of documents can be in different languages specially if the company that is being taken over doesn’t operate in English. FCPA compliance is also another element which requires legal translations as any organization merging or acquiring another business would ensure that FCPA compliance checks are thoroughly completed.
Translation of agreements, contracts and other legal and financial documents are often required during M&A process. For instance, when taking over a supplier business in China, a business operating in English will have to translate legal documents such as agreements and contracts Chinese company has in-place in order to be sure about the business arrangements. There can also be various employment contracts that can possibly exist in different languages and their translation might be required as part of review process. With all these similar requirements, it is essential to have a translation company that is experienced and is able to manage translation requirements in a competent manner and produce accurate translations.
Type of documents commonly required during M&A
M&A can be extremely lengthy process as it involves reviewing documents to ensure that merger or acquisition is a viable option therefore the review involves hundred and thousands of documents out of which, some can be in different languages that may require translations. Some of the documents that are commonly required for translation are:
- Contracts
- Agreements
- Non-disclosure agreements
- Annual Reports
- Financial Reports
- Sale and Purchases agreements
- Offering memorandum
How can legal translation services help speed up the M&A process?
The use of legal translation services is essential during any merger or acquisition deal and it certainly helps speed up the entire process in case there is a reliable legal translation service provider that is able to translate required documents in a timely manner. Lawyers working on any M&A deal have large number of documents to review which includes both legal and financial documents to determine various elements of the deal. The chances of stumbling upon foreign language documents are high if the deal involves an entity that has been operating globally in different countries. Under such circumstances, law firms rely heavily on professional legal translation companies that are able to translate documents on expedited basis. These translations are required by lawyers working on the deal to determine whether it is worthwhile going ahead with the transaction therefore if the translations are swiftly provided throughout the M&A process, the entire deal can be wrapped up quickly.
How to improve quality when performing legal document translations for M&A due diligence?
There are several ways to enhance the quality of translation services during any M&A due diligence process. Individuals working on a time sensitive cross-border transaction always prefer to look into a number of options for translating documents rather than relying on one and only solution. As a professional translation agency facilitating M&A deals, LingArch provides number of translation options.
- Full human translation: The documents are assigned to human translators to translate from one language to another. This is an expensive translation solution which involves human translators translating documents from one language into another.
- Machine translation: This is the quickest way to translate documents using machine translation AI functionality. The role of machine translation is to provide rough draft of the translation that be used for internal or informational use only.
- Machine translation plus post editing: This option includes having the documents translated by machine translation algorithm and then proofread by human proofreaders to make sure that the translation is thoroughly edited and checked for accuracy.
Why rely on LingArch on M&A related transactions?
LingArch has been providing legal translation services for over a decade with expertise in translating documents in over 100+ languages. Cross-border deals requires a specialized legal translation company that is able to bring in vast experience to ensure smooth delivery of translations in a timely manner.
LingArch has all the right traits to manage workflow related to translating documents. Here are some of the benefits of choosing a certified legal translation agency like LingArch:
1. Efficient project management skills.
2. Flexible in accommodating clients with allocated budget and turnaround.
3. ISO certified with quality assurance processes in-place.
4. Highly secured platforms to manage documents.
5. Adherence to the given timelines.
