Mergers and acquisitions can be lucrative transactions for all involved parties. However, these are highly complex transactions with a lot at stake, and many issues can arise that might put the deal in jeopardy, often resulting in losses or liability. It is important to recognize the issues that you might face, as well as have the right Ohio business and corporate lawyer addressing any issues swiftly and effectively.
While each merger and acquisition is different, the following are some possible issues that might arise and how a skilled corporate transactions attorney can help.
DISPUTES OVER PRICE OR TERMS
When a transaction involves high assets and multiple business owners, it should not be surprising that disputes can arise regarding price and other terms of the deal. When you have a lawyer who is a skilled negotiator, they can work to reach a middle ground with other parties to help the transaction proceed with terms that are favorable to you and that protect your interests.
FINANCING PROBLEMS
Acquiring companies need to have sufficient funds to complete the transaction and meet their end of the bargain. While our law firm does not provide financing for clients, we have many relationships with financial institutions, and we regularly help clients secure financing and other assistance when needed.
VALUATION ISSUES
Target companies must ensure that all assets and liabilities are accurately valued for the sake of pricing. This does not only involve what you find on your books, as that is only part of the value of your company. Intangible aspects of the business, such as informal contracts or business goodwill, should definitely count toward the value of your company and the purchase price. Our legal team has connections with accountants and financial professionals who can ensure your company is properly valued.
INSUFFICIENT DUE DILIGENCE
Before you complete a transaction to acquire or merge with another business, it is important that you fully understand all aspects and risks of that company. The company might provide inflated information or misrepresentations to try to complete the deal, and it is essential that you perform your own due diligence to discover everything you need to know. Our attorneys know how to conduct due diligence the right way to identify possible red flags or omissions and to prevent surprises.
REGULATORY ISSUES
There are many state and federal laws that apply to mergers and acquisitions, including antitrust laws and environmental regulations. Government agencies can cause problems for merging companies, and other competitors might raise concerns. An attorney can ensure you are in compliance to prevent issues or liability.
CONSULT WITH AN EXPERIENCED OHIO BUSINESS AND CORPORATE ATTORNEY
When your company is seeking to be part of a merger and acquisition, it is critical to first discuss the potential deal with a highly experienced business lawyer. An attorney can evaluate all possible benefits and drawbacks from the transaction, as well as identify any possible problems that might be foreseeable. The legal team at Weisensell, Mastrantonio & Orlando, LLP. know how to assist you, so please contact us online today.