There are many compelling reasons why you should hire a business attorney to help you navigate the complex legal landscape. An attorney for business contracts near you will help you understand contracts and write legally binding contracts in a way that benefits and protect your business.
If you are planning a merger or acquisition, your lawyer will properly structure the deal and assist you with the appropriate financing. They will draft and negotiate contracts for the sale of portions of the business. Before we discuss the importance of a business attorney for M&A, let’s define mergers and acquisitions.
Mergers
A merger can be defined as an agreement that unites two businesses into a single entity. Some different types of business mergers are horizontal mergers, vertical mergers, conglomerate mergers, market extension mergers, and product extension mergers.
Two companies merge to reach more customers, expand into new segments, and gain market share. Often, merger agreements include a no-shop clause, which prohibits the target company’s management, agent, or stockholders from soliciting purchase proposals from other parties.
Acquisitions
An acquisition occurs when one company buys most or all of another company’s stocks or assets to gain control of the business. If an acquirer buys more than 50% of the target firm’s stock, they can make decisions about the assets of the acquired company without consulting other shareholders.
Companies acquire other businesses to realize economies of scale and reduce costs. If planned and structured properly, an acquisition can result in synergies that offer real value for the acquired company and the target company.
Why Do You Need a Merger and Acquisition Lawyer?
Merging with another business or acquiring another company can be an intricate, complex process. If you are planning a merger or acquisition, it is a good idea to seek the assistance of an experienced corporate lawyer. Your attorney will walk you through the process and help you understand tax implications.
The professional will negotiate contracts and sales on your behalf, help you define your immediate goals, and create a long-term strategic plan. Your attorney will also ensure legal compliance.
Your merger and acquisition lawyer will:
- Identify legal issues that may arise during the merger or acquisition
- Help you with paperwork
- Identify tax implications and changes in tax status for future filings
- Review contracts
- Negotiate with the other party’s legal team on your behalf
Do you need help drafting the terms and conditions of your merger or acquisition? The Law Office of Stephen M. Beckwith has you covered. Stephen M. Beckwith is a seasoned attorney for business contracts near you. To discuss your needs, call our office at (707) 526-5454.