Experienced Lawyers For Purchasing or Selling A Business
Purchasing or selling a business is a complex process. At EPGD Business Law, we are prepared to guide you every step of the way. Our knowledgeable attorneys help our clients understand how their business’s purchase, sale, or merging will affect them, their customers, and their employees.
Our goal is always to protect our clients’ interests, no matter how large or small your merger or acquisition may be. We provide legal counsel for mergers and acquisitions (M&A) in Florida, Washington D.C., and nationwide. You can learn more about how we assist our clients during M&A by calling 786-837-6787 or emailing us today.
Structure of the Mergers & Acquisition Process
Mergers and acquisitions (M&A) refer to transactions between companies combining in some way or form. Although both terms come hand-in-hand, they come with different legal meanings. A merger involves two companies of similar size combining to form a new single entity. In contrast, an acquisition refers to a situation where a larger company acquires a smaller company, absorbing the business of the smaller company.
Whether it’s an acquisition or a merger, the main steps of the M&A process are generally the same:
Letter of Intent
The first step is for Company A to verify via a letter of intent that Company B is interested in performing a merger or acquisition. It should lay out the basic offer terms that Company A expects to offer during the M&A process
Negotiations and Purchase Agreement
Next comes the negotiation period. This is a time when each party’s business attorney gives its point of view and negotiates specific clauses to best serve the interest of the client. For example, we might want a non-competition clause or a certain amount of the funds to be held in escrow for a specific period to make sure the other party meets its obligations, etc. There can be a lot of back and forth in this stage. The attorneys will then put all the terms in a purchase agreement for the parties to execute.
After a purchase agreement is put into place comes the essential phase of due diligence. This is carried out by the attorney of the acquiring company. The due diligence period, which can last a few weeks to several months, makes it possible to verify that everything is as presented. The attorney will verify the licenses, the leases, the employment contracts, the assets, etc. At the end of the due diligence period, the attorney will advise the client whether to continue the transaction. Performing due diligence is key to avoiding costly business litigation in the future.
Finally, the closing brings together the final steps in the merger or acquisition process. Closing documents are prepared for the parties to execute.
Skilled Legal Counsel During Mergers and Acquisitions
At EPGD Business Law, our attorneys will guide you step-by-step during any merger and acquisition process. We will provide guidance regarding the drafting, negotiation, and performance of contracts for the purchase or sale of your company. We will handle any transactions with careful planning and attention to detail.
Learn more about how we can support your business during M&A by calling us at 786-837-6787 or reaching out online to schedule your consultation with an experienced merger and acquisition attorney today.