An average M&A transaction in Saudi Arabia generally takes several months to a year. The timeline depends on the complexity of the deal. Early preparation is advisable to get ahead of potential risks, issues with regulatory compliance and delays during M&A negotiations in KSA.
The due diligence checklist items unique to Saudi mergers and acquisition deals include operational due diligence that covers potential risks to Saudization. Workforce risks can affect a company’s future growth and performance. Cultural due diligence is also a checklist item to determine the impact of a post-merger integration. Another unique due diligence in Saudi Arabia is assessing regulatory compliance.
The key sectors for M&A activity in Saudi Arabia include healthcare, renewable energy and green technologies, technology, and entertainment. Privatization programs and cross-border deals are presenting considerable opportunities in mergers and acquisitions in Saudi Arabia. With efficient M&A counsel, your business can explore these opportunities.
The regulatory approvals required for an M&A deal in KSA include the General Authority for Competition (if the deal will result in economic concentration), the Ministry of Investment (for foreign investments of a private company), and the Capital Market Authority (for public M&A transactions). Multiple regulatory approvals are also required for companies in specific industries. For example, technology M&A law requires communications and IT businesses to get approval from the Communication and Information Technology Commission.
The typical fees for M&A legal services in KSA cover the planning stages, due diligence, negotiations, and regulatory approvals. Legal fees are structured according to hourly or fixed fees. The cost will depend on the complexity of the transaction. Book a consultation with Trabulsi & Co. today for an estimate based on your legal needs.