Acquisitions and mergers are types of business transactions that involve the consolidation of two or more companies into one. This is a major event for any company and can affect every person in the business, from shareholders to owners and employees to customers. To ensure that an acquisition or merger goes smoothly, having a legal team provide thorough preparation is essential. Our team at Bachus, Brom & Taylor, LLC can represent your best interests as this process moves forward. Whether you are the seller or buyer, our Birmingham, AL business acquisition lawyer can assist you in making sound business and legal decisions from the very beginning.
A merger happens when two or more companies join together to form a singular company. As our knowledgeable business acquisition attorney explains, there are a few different types of mergers that exist, including horizontal, vertical, market extension, conglomerate, and product extension. The merger used will depend on what the businesses need. While merging, there is often one buyer and one seller, and it is possible for there to be a merger of equals where two businesses combine together with equal shares. A merger of equals is rare, as one company is usually acquiring the other more greatly. But out of respect for the process, it may be called a merger of equals as a marketing and management tactic.
When one company purchases another, this is referred to as an acquisition. This can be done by buying a significant amount of the company’s stocks, assets, or other equity interests. With a stock purchase, the acquirer buys all of the shares within a company, taking on their liabilities and assets. This can be a complicated process if there are a large number of company shareholders. Through an asset purchase, the acquirer buys most or all of the company assets, including stock, inventory, vehicles, facilities, and equipment. There is no need to buy the entirety of the company assets but can select which assets they want to take. This puts the buyer in an advantageous position as they can select with liabilities and assets they take on.
If you are undertaking an acquisition or merger, know that these are complex transactions that require strategic legal advice. Our team at Bachus, Brom & Taylor, LLC can lead you through the process. It is imperative to practice due diligence and consider corporate governance, antitrust, and taxation. Our AL business acquisition attorney can assist with identifying the correct deal structure, drafting and negotiating transaction terms, obtaining third-party consent, closing the transaction, and performing post-closing tasks. Merger and acquisition processes can be difficult to handle on your own, which is why we suggest letting our team guide you. We can watch out for your best interests and attend to any unexpected problems if they arise. A legal team is a vital resource when it comes to handling any and all business related matters. To learn more about how we can help you with a merger or acquisition, contact our team today!
