Are You Considering a Merger and Acquisition for Your Florida Business?

 Posted on December 22,2022 in Business Law

As your business grows, one issue that may come up is whether or not merging with or acquiring another business would be financially beneficial. Last year, there were just under 25,000 mergers and acquistions in the United States, alone. If taking this step is something your company is considering, it is critical that you consult with a Fort Lauderdale business attorney who is skilled in this area of law. Having an attorney advocating for you will ensure that your business is protected throughout the process, as well as ensure that all applicable regulations and laws are being adhered to.

What Is a Business Merger and Acquisition (M&A)?

When one business merges with the other, it is a consolidation of the two companies through financial transactions between the two. This can involve:

• Purchasing and absorbing the other company entirely

• Creating a new company

• Purchasing a percentage or all of the company’s major assets

• Purchasing a percentage or all of the company’s shareholders’ stock

• Engaging in a hostile takeover

The majority of M&As occur because one business believes it will gain a competitive advantage over the other company. No matter what the reason, any type of action should involve a complete vetting of the company you are looking to acquire.

How a Business Attorney Can Help?

In addition to the vetting process, there are other steps to the M&A process your attorney can help with:

• Business structure – You will need to decide what type of business structure the new company that emerges from the M&A process will be (corporation, partnership, LLC, etc.). Knowing what your long-term business goals are, as well as the regulatory, employee, and tax areas that will impact your company will factor greatly into that decision.

• Negotiation and Financial Documents – Your attorney will provide representation during any negotiations that take place, as well as draft and review all financial documents to make sure you are receiving the most factorable terms and conditions in the transaction.

• Contracts – There are a number of contracts that will need to be signed during the entire M&A process, including letters of intent, non-disclosure agreements, stock and asset purchase agreements, employment contracts, non-compete agreements, and consultant agreements. Your attorney can prepare all these contracts for you.

Contact a Fort Lauderdale, FL Business Lawyer

Even after your M&A is completed, you having a business attorney on retainer can help you with any future legal issues your company may have. At The Elliot Legal Group, P.A., our skilled Broward County business attorneys can provide legal assistance in any business law issue that may arise. Call 754-332-2101 to schedule a consultation and learn how we can help.

Sources:

https://www.statista.com/statistics/914665/number-of-ma-deals-usa/

https://www.investopedia.com/terms/m/mergersandacquisitions.asp