Alibaba IPO shows why lawyers matter
Following the record-setting IPO of Alibaba, Jack Ma is now a global business icon. In China he has been a business titan for a much longer period of time.
When the appointed date arrived, Ma was incensed to learn that the financial advisors and lawyers for Yahoo China had, in Ma’s opinion, taken something very simple and made it unnecessarily complex. He scolded the Yahoo China lawyers: “You may know how to buy a company but you do not know how to sell a company.”
He instructed the lawyers to rip up the complex transaction documents and prepare something simple and straight-forward reflecting the deal terms that had been agreed in principal. Ma then left his audience of Chinese business leaders spell-bound as he, in his typically articulate and humorous manner, ridiculed the role of financial advisors and lawyers in M&A transactions.
So when I took the podium for my presentation, I put aside my prepared remarks, and in my best “white monkey” Chinese said: “I believe that I owe it to all of my fellow lawyers to take a few moments to give a friendly rejoinder to Jack Ma’s uncomplimentary remarks on lawyers and financial advisors!” The large crowd of business leaders applauded enthusiastically, wondering at my presumption to take on Jack Ma.
One $25bn IPO later, I think we can safely assume that Jack Ma is no longer railing at his (or his counter-party’s) lawyers. In fact, we can safely assume that even in December of 2005 Jack Ma was no one’s fool. When he scolded Yahoo’s advisers, it might well be that he did so as a calculated tactical negotiating ploy.
Source: thelawyer- Alibaba IPO shows why lawyers matter
