For many companies, mergers and acquisitions are vital growth strategies. In other cases, they are useful for those ready to step away from their business and either retire or try something new. Most people associate mergers and acquisitions with large public corporations, but small businesses can engage in these types of deals as well.
No matter your reasons for purchasing or selling a company, you can benefit from talking with a practiced business law attorney before executing a transaction. Get in touch with an Alpharetta mergers and acquisitions lawyer.
The terms merger and acquisition are often used interchangeably, but they are two different transactions. While both approaches involve consolidating the structure or assets of two or more businesses, they use different processes to reach that goal.
In general, mergers involve two companies combining into a new entity. Often, companies that merge choose to reform under a combination of both businesses’ names. In some cases, the purchasing company will absorb its new acquisition into its existing corporate structure. In other cases, the acquired company remains intact and serves as a subsidiary of the purchaser.
Typically, acquisitions involve a larger company purchasing a smaller one. Mergers are more likely to consist of the combination of two companies that are relatively similar in size. An Alpharetta attorney can help you determine whether a merger or acquisition is best for your company.
There are many steps involved in purchasing or selling a company, but hiring a lawyer can make it easier to navigate the process. For example, in either of these transactions, the buyer must do their due diligence to determine whether the seller’s company is worth what they claim. During this step, legal counsel can protect you by drafting non-disclosure agreements to ensure these initial meetings remain confidential.
Attorneys are also central in negotiating these deals. In addition to negotiating the purchase price, a mergers and acquisitions lawyer can help you structure the sale through a stock purchase or asset purchase agreement. A skilled lawyer can also insert a non-compete clause in the contract and you on the type of sale structures that could help you avoid negative tax consequences.
Every merger and acquisition is different, and unexpected challenges may arise that hinder you from closing the deal. Our legal team can help you push through potential obstacles and achieve your business goals.
The business of mergers and acquisitions can be one of the most complex facets of corporate law. Negotiating these transactions can be challenging, given the wide range of issues that must be addressed.
Whether you are the target of an acquisition or considering an expansion of your business, seeking the guidance of experienced legal counsel would be in your best interest. Let an Alpharetta mergers and acquisitions lawyer advise you on your options before moving forward with a transaction. Call our office today to schedule an initial meeting and discuss your case.