Common Business Mergers Issues

April 08, 2022

business mergersPreparation, strategy, and negotiation structuring that anticipate potential challenges and concerns are the keys to most successful Mergers and Acquisitions (M&A).

Identifying and addressing these present legal challenges ahead of the deal with your Tampa business lawyers is critical to success.

Domestic Mergers

Common issues when merging domestic businesses in Florida include :

  • Choosing the wrong company to target
  • Excessive reliance on synergy
  • Overpaying
  • Risks that originate outside of the system
  • Losing the confidence of key stakeholders
  • Poor due diligence
  • Ignoring the red flags
  • Failed Integration
  • prioritizing the wrong factors

International Mergers

Common issues when merging businesses in Florida with international companies include:

Due Diligence: Lack of research causes delays, waste of time and money

Issues of Antitrust and Competition: May arise if a non-US acquirer directly or indirectly competes with the target company or owns a stake in a company that does

Political Factors: Check for possible political ramifications

US Law Compliance: Making deals in the United States is difficult for non-US firms, as is integrating after that

Transaction Design: It’s critical to explore a range of transaction structures

Client-attorney Privilege: Unlike the US attorney-client privilege, privilege norms vary widely among countries and might prove disastrous

Labor and Employment: Cross-border labor and employment issues could get complicated due to variances in local jurisdiction regulations or conventions and practices

Tax and Accounting Issues: Tax issues usually dictate transaction structure

Post-Closing Issues: Diverse cultures, languages, and business practices

Before Merging

  • Compare and contrast the corporate hierarchies
  • Determine the company’s leadership.
  • Analyze the differences between the corporate cultures
  • Determine the company’s name and logo
  • You should examine all financial positions
  • Calculate the costs of operation.
  • Make a thorough investigation of the situation
  • All companies should be valued

How Florida’s Short Form Merger Provision Plays a Role in M&A

To move through with a deal, a smaller percentage of its shareholders must approve it in structure.

Since the goal of every transaction is to close as quickly as possible, this expedites the process for both buyers and sellers.

How Your Business Attorney in Tampa can Help

Companies merge all the time, but the process can be time-consuming and difficult. 

Numerous factors require consideration to ensure that the process goes smoothly.

They include monetary, regulatory, and structural concerns. Consult with a Tampa business litigation attorney at The Law Office of Robert Eckard & Associates, who has expertise merging businesses like yours.

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