In M&A and corporate financing, precedent has real dollar value.
Case law involving fiduciary duties, antitrust challenges, and disclosure obligations heavily influences how deals are structured and priced. A target company with a strong legal record and compliant governance framework often commands a premium. Why? Because past precedent gives buyers clarity and reduces perceived risk.
Moreover, counsel who understand the nuances of precedent—from Revlon duties to the evolving business judgment rule—can draft deal terms that hold up under scrutiny, preventing costly post-closing disputes. In deal-making, precedent is both shield and sword—and a key driver of profit.