This interview has been published by Priyanka Karwa and The SuperLawyer Team
Can you walk us through your journey and share what led you to pursue a career in law, particularly with a focus on corporate mergers and transactions?
Many decide their career paths while they are about to enter Class 10 in school. While my mind was always inclined to take science and pursue a career in medicine, destiny took me to Accountancy in my 11th and 12th. Blessing in disguise, as it felt that I got into the subject where I belong. So my journey started there. With the preliminary learning of accountancy, I decided to pursue a career in commerce and took admission in B.Com (H) in Delhi University. It was around the end of 2008, where I was still wondering whether it would make sense to do an MBA (like my peers) and move on to joining a bank or a consultancy in finance, but then again I was destined to be introduced to a subject called ‘Corporate Law’ during my 2nd year of B.Com. It was fascinating as I was always keen to learn about companies and their functioning, given that we grew in the era of blooming joint ventures, international tie ups and growth of Indigenous businesses in India. I was intrigued to know how much running a company is driven by accounts and mathematics, and thus, that’s where it all began. I chose to pursue a career in law. However, maybe I wasn’t prepared enough, and I failed my first attempt into Delhi University (Law Faculty) in the entrance exam. It was 2009, peers had found their place and here I was wondering what I should do now. I decided its time to drop a year, work with a financial advisory company and reattempt the Law entrance exam. I joined Law Faculty in 2010 and graduated in 2013 with a degree in B.Com (H) and LL.B. During my student days at the Faculty I continued interning with different law firms in New Delhi, NCR. My most memorable internships were at J. Sagar Associates (my first job). I was given an opportunity to join JSA in August 2013 and I continued working there for a while before I moved onto other law firms such as Shardul Amarchand Mangaldas. My focus area in all these firms was corporate-commercial and I was given an opportunity to assist team members in ongoing live transactions ranging from business transfers, joint ventures, private equity, and other general corporate advisory services. I believe that if I wasn’t given this chance, life would probably have been very different. Thus, if at all I can say that I have gained knowledge in the field of law, the credit truly goes to those seniors who gave me the opportunity to learn. Thus, through this medium I would like to thank Mr. Jyoti Sagar (Chairman and Founder) and Mr. Upendra Nath Sharma (Partner, JSA).
After years of learning from different lawyers and gradually taking steps to lead transactions and advise clients, in 2020 I set up a small law firm – Gadi & Associates (GnA). It was tough and challenging to make this decision but I believe that sometimes as a lawyer you have to take steps that are beyond your comfort zone to ensure that you give the soundest and best legal advice. Thus, while keeping that thought in mind, I took this decision and set up a shop (a table and a chair in my house and a banner on the window). The shop was now open. I have primarily gained experience in corporate law and so my first instinct drew me to help Clients in contractual matters. It’s not uncommon that once you disassociate with bigger brands, Clients take time to get that confidence in you, but I am grateful to my initial clients who had that faith in me and gave me my first assignment.
2020 was the birth year of GnA with a single member team and today I run a law firm with a strength of 25 (all inclusive).
Given your extensive experience with tier 1 law firms and now as the founder of Gadi & Associates, what motivated you to establish your own legal practice in New Delhi?
The key motivation to establish GnA and to take on this journey was to challenge myself in an environment with cut-throat competition. I genuinely feel that every lawyer has his/ her own way of expressing opinions and assisting clients, so one shoe doesn’t fit all. The key was to demonstrate to clients that my style of thinking and my approach to matters is unique and could yield results which they probably wouldn’t expect. While I never discount my learning years, I did feel that it was time to practice in a style and manner as I independently wished to apply, rather than aiming to make a change in the existing set up of other law firms. Having said that, establishing from scratch without any legacy in the industry did throw its own challenges and sometimes made it difficult to work, but I always kept repeating this to myself – ‘Don’t be ashamed if you fail, be ashamed if you fail without trying’. So I kept at it and kept trying. GnA came into existence and grew bigger and bigger in size, with its first office in 2021 and with now a new office in 2023. What back then in 2020 felt would be impossible, started becoming a reality and now is being lived each day with the focus to make other impossibilities a reality. So I can say this with all conviction that it was not easy to start and was surely not easy to continue, but now when I look back I say to myself that it was not that difficult too. My other motivation was to try and bring a different approach to corporate matters. While as counsel we typically work on agreements and assist clients in negotiations, I try to understand the financial modelling behind each transaction or commercial tie up. Definitely I do not give any opinions on accounts but given my background and keen fondness to learn different aspects of accountancy, it helps in understanding and advising best legal resources and positions to have in such matters. Needless to say that a commercial tie up or a strategic alliance are primarily driven by the accounts behind it, so as a commercial lawyer it is our job to understand that relationship and advise accordingly.
You’ve been involved in a variety of high-value transactions, including representing a global private equity fund in a multi-billion-dollar acquisition. Can you share some insights into the challenges and strategies you employed in such a complex deal?
It wouldn’t be fair to give any critical details in the public domain, but it a few aspects that I would like to share are: (i) Commercial Sense – When I got introduced to the transaction I was only trying to figure out in my head the commercial sense behind the matter and if the deal at that particular value made sense. That gave me an opportunity to learn something new that I hadn’t been introduced to earlier, and that was the economic benefit of the future. Many times I have heard people use the phrase ‘does this make any commercial sense’, even by me while discussing the matter with colleagues. However, I did get the answer to this question in a manner that I hadn’t expected. It wasn’t necessary to see the commercial sense of the matter in the present but rather what it would be in the near future or within a period of time being envisaged by the acquirer. While doing the matter, we get involved with the details of the matter but somehow miss seeing the macro approach of the said industry vis-à-vis other industries. So it wasn’t necessary for just this business to grow but to see how it is important for other industries to flourish and grow at the same time to ensure that the growth of this business continues and eventually that commercial sense comes to light. (ii) Due Diligence – If there is something that helps in undertaking transactions or ensuring that a lawyer is doing his/ her job, it is important to take note of the criticality of due diligence. It is not merely a report, but an action item that can change or mould the frame of the transaction. We do hear of different forms of due diligence reports, but at the end the critical aspect is ‘due diligence’. I believe my key learning here was to be a part of the due diligence team and understanding the different forms of compliances and key requirements to put together one list of critical aspects. If there were any findings that showed any legal issues then it is important to also find the recourse to such legal problems and assist in implementing the solution. We did find a few critical legal challenges here as well, but given the experience of the team I was working with, it was easy to help in implementing the correct solution and take the transaction forward. So in a nutshell as a strategy to a transaction, due diligence is key and must be undertaken with great importance.
Your role involves advising multinational companies, startups, and family-run businesses. How do you tailor your approach when dealing with such diverse clients, each with its unique set of challenges and priorities?
Truly, this journey started with GnA. Prior to starting GnA it was mostly assisting large scale companies in their matters including transactions, general corporate advisory, compliance, etc. It is only when I started GnA that I understood the importance of being a ‘Generalist’. While I do say that my key focus area in law is corporate – commercial, I started branching into other aspects of law and advising diversified clientele in a variety of matters. While the category of clients in question still seem to be hinting more on corporate work, in reality it entails a number of legal aspects such as promoter relationship, family lineage planning with succession plans, asset management under different vehicles for betterment of operations, etc. This may also at times include undertaking real estate transactions, preparing wills and settlements and also managing the operations of smaller set ups in terms of division of roles. One key aspect here to note is that it is not limited to operating out of one vehicle for family businesses, our laws give us many ways of undertaking such plans. For instance a division of businesses is not merely to be driven by settlements, it could be that we divide businesses by way of demergers, slump sale, etc., and the meaning behind these transactions are completely different than what we generally do for other corporations. In the case of start ups, it is critical for a lawyer to understand the drive of the promoter(s). As lawyers it is important to understand that a promoter(s) does not generally know about compliance and applicable laws. It is the duty of a lawyer to ensure that the start up business becomes compliant with all laws while ensuring that the Promoter(s) can stay on course with the project that they initiated.
Having assisted in the acquisition of a refractories plant and the fund raise for a logistics company, could you highlight the key considerations and legal intricacies involved in transactions within the manufacturing and logistics sectors?
The former was an asset purchase transaction, different from the typical slump sale transaction. In an asset purchase the key factor is identified: purchase price of the assets and transfer of each individual asset be it a plant, machinery, equipment, land, etc. Frankly, while the entire transaction was similar to any other asset purchase deal, the critical aspect of this deal was the transfer of real estate. This was probably the first time experiencing a transaction with respect to real estate where my involvement was not limited to preparing the definitive document but also to assist the client in the entire registration process. This experience was beneficial and educational as it helped my journey to start working on more real estate transactions and today at GnA we have a full real estate practice where we help with sale, leasing, mortgage and joint development transactions. The latter was a large-scale private equity transaction, where I was a part of the team that represented the company and the promoters. What was critical here was the fact that the business that we represented was becoming the growing need of the ever-evolving logistic sector of the country assisting ecommerce. As I have said earlier that not many times do you get the commercial sense from the transaction itself, but when you apply it with other sectors that are supportive sectors and see the immense opportunity there, you can co-relate as to why this sector would grow too and therefore, investments in such companies became the growing need. Although as a counsel, I did work on the investment document and assisted in the effective transaction closure in a timely manner.
In addition to your transactional work, you’ve also assisted clients in matters relating to disputes. How do you decide to diversify from corporate to litigation?
Well, as I mentioned, GnA was the reason I thought it was best to be a ‘Generalist’. Where I could have decided to remain a part of other firms and continued working only in corporate law, I did choose the other path and started GnA. Given this decision it became even more important to see the world of law in the Court of Law. Thus, it all started with a simple legal notice in the case of an employee dispute. I was approached by one of my existing clients to pursue a case against an employee involved in embezzlement. This was something that in my other organisations I would have passed onto my colleagues, but at GnA I chose to take this up as my very own and moved on with the mandate. As the matter progressed and went on, I started learning this aspect ‘on the job’. It’s been roughly 3.5 years since that first notice and today I engage in large scale dispute matters ranging from arbitration, company law petitions, insolvency matters, recovery matters, etc. In fact, starting a disputes practice gave me a better understanding of how words in a contract could have different meanings in different situations. Therefore, now drafting a contract makes it critical for me to examine each provision/ clause with such combinations that maybe wouldn’t have been the case if I wouldn’t have stepped into the world of litigation. I sincerely believe that each lawyer (corporate or litigation) should gain experience of both worlds as they are complementary in nature and not as alternate professions.
With a wealth of experience, what advice would you give to law graduates aspiring to specialize in corporate law and mergers and acquisitions?
To the aspiring law graduates who wish to enter the field of corporate law whether for M&A, PE, VC or general corporate advisory, it would help if you start from the basics. It is not necessary to know everything about what a transaction entails in your initial years, but you should either find answers to or have the will to ask questions regarding aspects that are introduced to you. In practice, many seniors use terms and abbreviations which any aspiring law graduate/ intern may not understand (the same happened with me), which makes it even more difficult to comprehend the entire discussion which is taking place. Thus, an on-the-job experience makes it even more important to learn such aspects by either spending time to find the answers or questioning the seniors. A senior colleague of mine once said to me ‘sometimes I forget that my junior colleague has not read this in his life’, which basically means that seniors do know that you are new to this world and will take your own time to learn, but it still will demand your full involvement in the matter by being inquisitive and focussed. A great way to get a kickstart in the field of corporate law is by doing internships with corporate law teams of firms that generally undertake transactions. As a law student who still has a couple of years left before he/ she graduates, if you are keen on becoming a corporate lawyer, you should find data about transactions and the partners of firms who undertook those matters and then try and get internships with those partners to ask them questions about the transaction. Having said that, law is a journey that involves never ending learning and every lawyer has something to share for you to learn.
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