Considering a Merger or Acquisition?
A Redwood City Mergers and Acquisitions Attorney Can Help With the Transaction
There are multiple types of business transactions that can strengthen or save companies. Mergers and acquisitions are great examples of such transactions. With a merger, two companies join forces and become a single entity. Acquisitions are much like they sound—where a company takes over another company. However, the process of merging with another company or acquiring one can be very difficult without the help of an experienced business law attorney. Multiple federal regulations stipulate how these transactions work. Negotiations are often necessary. Fortunately, a Redwood City mergers and acquisitions attorney can help your business with the process.
Bay Area business lawyer Drew Winghart founded his law firm on the principles of excellent client care, cost-effective solutions and successful results. At Winghart Law Group, Inc., we provide our clients with personalized service that larger firms cannot match. If your business is looking to merge or acquire another business, then you have come to the right place. Winghart Law Group, Inc. can help with negotiations, paperwork and any problems that may arise while merging with or acquiring another company.
Do I Need a Business Attorney for a Merger or Acquisition?
Businesses gain several benefits by using an attorney during a merger or acquisition. There are also scenarios where it may be necessary to have an attorney aid with the process. A business attorney could help with:
- Negotiations: Chances are, your business will be involved in negotiating the terms of a merger or acquisition. Employment contracts, nondisclosure agreements, client contracts, benefits, pay and other factors could become part of the negotiation process. These are only a few of many possible examples of issues that may arise when negotiating a merger or acquisition.
- Risk management: Mergers and acquisitions may also come with certain legal or financial risks. For instance, your business will need to abide by certain federal and state regulations if it intends to terminate positions. The business you are acquiring could have certain debts or liabilities. A business attorney can help mitigate these risks.
- Paperwork: Regardless of the size of your company, paperwork is likely to be involved in a merger or acquisition. For instance, a letter of intent, confidentiality agreement, employment paperwork and employment contracts could be necessary. An attorney could help guide you through the paperwork process.
- Deal structure: A preferred deal structure is typically mentioned in a letter of intent. The letter of intent is sent at the beginning of the merger and acquisition process. A Redwood City mergers and acquisitions lawyer can help with the creation of this letter. He or she can also help you structure the deal to your benefit for tax and legal purposes.
What is the Process for a Merger or Acquisition?
Companies usually consider a merger or acquisition when they are aiming to further their own business interests. If you are considering a merger or acquisition for your business, then you likely have many questions about the process. The process for a merger or acquisition generally involves:
- A tender offer: Mergers and acquisitions almost always begin with a proposal by the acquiring company to purchase stock. The acquiring company will want to gain access to enough shares and have a controlling interest in the business. A tender offer is typically made public to the rest of the business community.
- A letter of intent: Before negotiating the specifics of a deal, it is important for both parties to state their intentions. By drafting a letter of intent, you are showing the other party that you are serious about the potential merger or acquisition.
- Due diligence: It is important for both parties to have enough information to negotiate a fair agreement. The process of due diligence involves sharing information about your business and receiving information about the other party. You should contact our Redwood City mergers and acquisitions law firm before sending or receiving any privileged information.
- Compliance with the SEC and state laws: When engaging in a merger or acquisition, you must comply with the relevant U.S. Securities and Exchange Commission (SEC) regulations. You must also comply with any state laws that could potentially impact the outcome of your merger or acquisition.
Merger or Acquisition? Contact a Redwood City Mergers and Acquisitions Attorney Today
The goal of any company is to execute a business strategy and increase profits. Sometimes, a company’s business strategy involves merging with or acquiring another business. A Redwood City mergers and acquisitions attorney can help you successfully negotiate the transaction and prepare the appropriate paperwork.
If you are a considering a merger or acquisition for your company, then contact us today at (650) 332-2994. You can also contact us online and provide us with details about your merger or acquisition. We promise to carefully review your information and look forward to meeting with you soon.