Why You Need a Mergers and Acquisitions Attorney
“Who you engage to handle your legal issues in a business sale is really significant and I often see business owners choose an attorney who doesn’t have the transactional experience required to handle the deal. ”
If you’re the owner of a small business that’s interested in merging, acquiring or being acquired by another business, you need the proper legal support to ensure that you are getting the best deal possible. These transactions are risky, but an experienced mergers and acquisitions attorney will earn their fees by minimizing risk at every stage of the transaction. That’s why your Mergers and Acquisitions Attorney, along with your Business Broker and Accountant (CPA), should be a key player on your team whenever your business changes its structure.
What Can a Mergers and Acquisitions Attorney Do for You?
Your mergers and acquisitions lawyer will thoroughly research the other business so that there are no last-minute surprises. They will conduct the negotiations over price and terms, drafting memorandums of understanding or letters of intent, so that you and the prospective buyer can see if there is a true meeting of the minds. The best mergers and acquisitions attorneys will get you to take off your rose-colored glasses as they explain the risks of the deals and ways to mitigate them. They will review the contracts, such as a purchase agreement, to ensure that they adhere to all federal and state laws. Some deals will require the preparation of confidentiality and non-compete agreements or memorandums of due diligence. They will prepare the company for the transition and advise you about your fiduciary duties and shareholder rights under the new business arrangement.
Mergers and Acquisitions Attorneys - From Start to Finish
Some business owners think that they don’t need to hire a Mergers and Acquisitions attorney until it’s time to close the deal. This would be a serious mistake. The best mergers and acquisitions lawyers come into the process early in order to help answer legal questions for a potential sale of a business. For example, they can explain the different options such as an asset sale vs. stock sale. In addition, tax or debt considerations or human resources issues (wage & overtime disputes) might mean it makes more sense to create a new business entity in a merger, winding down the existing companies. Throughout the process, Mergers and Acquisitions attorneys keep an eye on all of the legal ramifications enabling you to focus on running your business all the way to a successful closing.
To learn more about the benefits of an experienced M&A Attorney contact, Jim Peddle, at 312-525-9622 or by email at president@playbookadvisory.com.
If you are interested in discussing your business with one of our attorney referral partners feel free to reach out to any of the three listed below;
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