Why an Attorney is Needed During a Business Acquisition July 26, 2021 | Business Litigation
What Is a Business Merger?
A merger in business is the uniting of two separate companies that result in the formation of one new company. The most common reason for a merger is for at least one of the two companies to expand its reach into the consumer market. In many cases, both parties gain something from the merger. Typically, there are lawyers involved as is exemplified by The Law Office of Robert Eckard & Associates.
What Are the Varieties of Mergers?
According to a successful Palm Harbor business attorney, the majority of mergers is a voluntary joint decision by the leadership of both companies. There are five different kinds of mergers. They are congeneric, horizontal, conglomerate, market extension, and vertical. To make certain everything goes smoothly, attorneys are typically called upon to oversee all procedures in any type of business merger.
What Are the Steps to a Business Merger?
There are specific steps taken by the party that wants to acquire another company. They are as follows:
- Development of a strategy for the acquisition
- Establish merger and acquisition search criteria
- Begin to look for qualifying companies and study them
- Make more formal plans for the acquisition
- Perform a valuation of the company you would like to acquire
After the two companies agree to a business merger, further steps are taken to ensure a smooth transition. This is the time to contact the business litigation attorneys in Palm Beach FL or whatever geographical location is closest to you.
What Can an Attorney Do During a Business Merger?
The most important function according to business litigation lawyers in Palm Beach FL and around the country is to assist with all financial proceedings. Other things they help with include the creation of contracts for the sale of one company to the company doing the acquisition.
Due to the seriousness and complexities of such a massive undertaking it really is best to have the lawyers on hand. This ensures there are no legal snags along the way or after the deed has been completed.