A Business Merger or Acquisition Can Get Complicated

In Business Organizations by Coolidge Wall

Buying or selling a business is not as easy as, say, ordering new office supplies. Whether your business is acquiring a competitor in order to expand, or you are looking to sell off your company to another party, there could be multiple players involved, as well as legal questions that need to be answered.

First of all, if a company is acquiring another company, or two businesses are merging, there will be multiple stakeholders involved. Once negotiations between the companies are complete, usually the target company’s shareholders must approve the deal. The acquiring business will often sweeten the deal by offering stock to the shareholders, but this is no guarantee of a vote going its way.

Along with obtaining approval from stakeholders, it will probably be necessary to get financing to pay for the deal. Valuable assets and liabilities will need to be assessed, so their true value can be known.

Finally, in some cases laws restricting monopolies might be involved. Accidently running afoul of the law could scuttle the merger or acquisition.

To avoid delays or complete roadblocks to a business merger or acquisition, it is best to have experienced legal advice. An attorney can help your business negotiate the proposed merger, then present it to shareholders to help convince them to agree to the deal. The attorney can also guide your business through due diligence, and ensure that it complies with all relevant laws and regulations.

Finding the right attorney can make the difference between a successful merger or acquisition, or one that fails.