As your family business grows and you gain experience in the company’s goods or services, the possibility of acquiring another business or selling to another company may arise. Whether a transaction of that magnitude makes sense for you and your family will depend on various practical and legal factors.
Mergers and acquisitions for San Antonio family-owned businesses can involve specific steps to authorize and execute a transaction. With the guidance of our seasoned business merger and acquisition attorneys at Begum Peláez-Prada, PLLC, your company could evaluate its options and feel confident in its decision.
The prospect of a merger or acquisition might initially raise more questions than answers. You may wonder whether closing this kind of transaction is worth the time and resources or if the business will become stronger.
Answering these kinds of questions will depend on evaluating the current status of your family business. This evaluation, as well as the prospective counterparty and its circumstances, can help determine whether it is best to start a transaction.
For example, the size and financial condition of a possible purchaser for your company could provide an opportunity for additional capital and strength in your line of business.
However, a purchaser with less to offer may not be able to add enough value to make the transaction worth it. The specifics of the proposed deal will also include provisions for continuing the business and its identity if it is not absorbed into the other company.
An acquisition of another company could change the reputation and position of your family business, not to mention incurring significant costs. A San Antonio business attorney could help family-owned businesses navigate mergers and acquisitions by providing insight and perspective on a given transaction.
If a merger or acquisition might benefit your company, you will need to sort through legal issues surrounding the transaction itself and the internal requirements of the business. A dedicated business attorney could provide the advice and services necessary to consummate a transaction.
The terms of a transaction need to be evaluated with legal counsel, as a purchase or merger agreement will allocate legal risk and liability to each party. Among other vital parts, the agreement will determine which entity will pay taxes as of a specific date. It will hold each party accountable to the other for claims against the businesses.
The agreement will also include lists of tangible and intangible property to be transferred and special arrangements for the owners and officers of the entity being brought into the fold. All of these should be negotiated to benefit your family.
You will also need to ensure that your company’s governing documents allow for such a transaction, and you may need to hold a vote of the owners to authorize it. A San Antonio attorney could interpret the requirements of your family-owned business’s documents and create the documents memorializing approval of the merger or acquisition.
Mergers and acquisitions can include other complexities, implicating antitrust considerations and questions of securities laws. Having a lawyer on your side could make mergers and acquisitions for San Antonio family-owned businesses understandable and potentially beneficial to you and your family.
Our managing partner, Sasha Begum, brings nearly two decades of business experience in-house and large law firms, with a focus on the family as the unit behind the business. Contact our offices to learn more about how our attorneys could advise on a large transaction for your company.
