Working with a skilled business law attorney is crucial for any major company deals and transactions. Business and corporate lawyers are especially helpful when it comes to mergers and acquisitions. Whether you’re a small business or a corporation, attorneys Richard T. Bowles and Michael P. Verna can help. Their law firm has worked with numerous businesses in Walnut Creek, CA and throughout the San Francisco Bay Area.
Below, we want to briefly discuss the basic aspects of mergers and acquisitions. We’ll then explain why working with a business law attorney is so crucial during these kinds of transactions.
About Mergers and Acquisitions
Let’s start by defining our terms.
A merger refers to instances in which two or more separate companies combine into a single company.
Mergers may take the form of a merger of equals, in which companies combine but there is no larger acquiring company. There is also a so-called true merger, which is similar to an acquisition (we’ll explain in a moment) but treats the matter as a merger for marketing purposes or to remain deferential to existing employees and management.
An acquisition refers to the purchase of one company by another company. In acquisitions, the purchasing company is known as the acquirer while the purchased company is referred to as the target.
An acquisition can be accomplished through the purchase of the target company’s stock or through the purchase of the target company’s assets. In the former case, the acquiring company purchases all stocks from the target company’s shareholders. In the latter case, the acquiring company purchases the facilities, vehicles, stocks, and equipment of the target company.
Complications During Mergers and Acquisitions
Merging companies and acquiring companies can be a complicated process. Negotiating sales and contracts can be time consuming and difficult, especially when large corporations are involved. Even with small and medium-sized businesses, these kinds of matters could lead to lengthy back and forth between parties.
With so many questions about business objectives, tax obligations, and long-term planning, it is a difficult process to jump into without expertise in mergers/acquisitions or knowledge of the nuances of both types of transactions.
Do I Need a Merger and Acquisition Lawyer?
It’s generally a good idea to seek the assistance of a reputable business and corporate lawyer if your company is in the process of a merger or acquisition. Your attorney can offer insight into the process, help negotiate contracts and sales, and give you a good understanding of your immediate goals as well as a long-term vision for what lays ahead.
What Merger and Acquisition Lawyers Do
A mergers and acquisitions lawyer has a number of things for businesses, which includes:
- Noting legal issues the may arise during a merger or acquisition
- Drafting and filing the necessary paperwork
- Negotiating during the process on your behalf
- Identifying changes in tax status for future filings
- Identifying any hurdles posed by regulation laws
- Reviewing all business contracts, including employment contacts
If state or federal government agencies oppose the merger or acquisition, your attorney can be immensely helpful in determining your next step forward and how to contest the claims by said agency.
Learn More About Mergers and Acquisitions
If you live in the greater San Francisco area and would like more information about legal guidance with regard to mergers and acquisitions, be sure to contact a skilled business law attorney. You can reach our Walnut Creek law firm by calling (925) 935-3300.