If you are an entrepreneur, you must consider how to grow your market share and, eventually, determine your exit strategy. In either scenario, participating in a business combination with another company’s owners may be a wise choice. The process begins with a Letter of Intent after identifying a suitable target and ends with a definitive agreement.
Corporations are not the only entities that merge or acquire. Limited liability companies and partnerships also engage in business combinations. Acquired or merged companies can become subsidiaries or subsumed by the other entity.
When you are thinking about significant changes to your business, contact a San Antonio business merger and acquisitions (M&A) lawyer at Begum Peláez-Prada PLLC. An experienced business attorney like Sasha Begum could guide the legal process, and protect your interests throughout the process.
Mergers combine companies. Shareholders from both acquire shares in the combined entity. Management is pre-determined and may include principals from either or both companies. Mergers benefit the parties through:
Sasha Begum’s outside counsel and in-house counsel experience give her a unique perspective on business combinations. Listed multiples years in a row in SA Scene Magazine as one of the best business attorneys in San Antonio, she can direct your merger or acquisition from negotiations to closing.
Acquisitions occur when one company takes over or acquires another company. Our skilled business merger and acquisitions lawyers in San Antonio could negotiate and draft terms favorable to either the acquirer or the seller of the company. At Begum Peláez-Prada PLLC, we pride ourselves on our dedication to our clients’ needs and goals and always take the time to understand the deal terms most important to our clients and ensure that the applicable agreement addresses such terms.
A Letter of Intent (LOI) follows informal talks between the companies’ management to determine if there is a mutual interest in a merger or acquisition. Our attorneys could draft an LOI that binds the parties to how long they have to complete due diligence, restricts them from courting other candidates, and forbids them from sharing confidential information with others. The parties are not bound to close the deal, only to continue exploring the options.
Due diligence is the process of investigating all aspects of the other party’s business. It is an incredibly important step in acquiring another company as you do not want to be caught off guard with potential liabilities that may arise after acquisition and for which you may be responsible. This process involves lawyers, accountants, tax advisors, and other members of management studying the companies’ books and records. The team you hire is also incredibly important as you need professionals with experience in spotting issues and raising red flags when necessary. The legal professionals at Begum Peláez-Prada PLLC in San Antonio have the experience, knowledge, and a great support team to spearhead a successful due diligence process for a merger or acquisition.
If due diligence ends well, lawyers for both parties draft a definitive agreement for a merger or an acquisition whether a membership interest purchase, a share purchase or an asset purchase. Tax implications vary based on the type of structure the acquisition will take. Some points in these agreements include:
The definitive agreement may be as unique as the companies bound by it and should consider all points important to you.
Are you considering a business combination with a company you have your eye on or that has contacted you? Maybe you have begun negotiating and need help getting to the next step. No matter where you stand in the process, our firm could help.
The attorneys at Begum Peláez-Prada PLLC understand what it takes for a successful business combination. We listen to our clients and discuss their goals, from growth to exit strategy. If you want to explore the possibilities available to you and your company, call now for a consultation with a San Antonio business merger and acquisitions lawyer.
