Executing a Successful Merger in Georgia

Executing a successful merger in Georgia is not easy. Without qualified mergers and acquisitions lawyers by your side, you could jeopardize your business deal. Do not risk losing money in a transaction because you are unprepared. Reach out to the dedicated legal team at Sparks Law today to begin discussing your situation.

Essential Team Members in a Georgia Business Merger

If you are considering selling or purchasing a company, you need to build a strong team. Crucial people you will need to work with during a merger include:

  • Business lawyers
  • Bankers
  • Valuation experts or appraisers
  • Certified public accounts (CPAs)
  • Chief financial officer (CFO)

Attorneys are beneficial during merger transactions because they can help buyers draft critical employment and vendor contracts and asset purchase agreements for the acquired company. Additionally, lawyers can help the new owners get all their trademarks in order.

If the buyer needs to take out a Small Business Administration (SBA) loan to purchase the company, they will need a skilled banker. A qualified valuation expert or appraiser can prevent the buyer from overpaying for the business. An accountant can help you structure the deal in a way that is best for your taxes.

If you do not already have a chief financial officer, you could outsource a CFO to help you with the bookkeeping related to the specific deal you are working on. Before beginning any negotiations, you should retain a local attorney and discuss the people and resources you need to complete a successful merger.

The Importance of Setting Up a Confidential Meeting

Generally, it is best to discuss mergers behind closed doors. Only the buyer, seller, and the experts involved should be in the room. If there is a Board of Directors, they should be present. However, average employees should not attend, and you should not record these meetings.

Before any discussions begin, everyone who will be present must sign a non-disclosure agreement. It is essential that the meetings are private and confidential because both the buyer and seller must feel comfortable discussing their companies’ strengths, weaknesses, threats, and opportunities.

They should be able to talk openly about any employment problems they are facing, the salaries that they pay their workers, and how their businesses are doing in the current market. If the buyer and seller cannot speak openly, the lack of transparency could harm the deal.

The Process of Executing a Successful Merger

During the confidential meetings with the buyer, the seller should present a letter of intent (LOI) that details all the assumptions they are making about what the company is worth. After reviewing this document, the buyer does their due diligence to assess what the business is actually worth. Then, the two parties can negotiate and adjust the purchase price accordingly.

Once the price is set, the parties will need to draft and sign the stock or asset purchase agreement and all other contracts. By hiring a skilled lawyer and following these steps, you could execute a lucrative merger.

Contact Our Firm to Discuss Executing a Successful Merger in Georgia

Merging with another business can be an exciting and frustrating process. Our dedicated attorneys at Sparks Law are here to help you through it. If you are buying or selling a company, contact us to talk about executing a successful merger in Georgia.