Business Lawyers Blog
Corporate acquisitions are rarely simple. Any merger requires careful pre-planning on both sides. And even where there is eagerness to conclude an M&A deal quickly, several steps must be followed to ensure a successful outcome for all parties involved.
At Structure Law Group, our Texas mergers and acquisitions attorneys can assist your business at every stage of a corporate merger. Whether you want to acquire or be acquired, our legal team has the knowledge and specialized skills to guide you through the M&A process. Indeed, an experienced Texas business attorney plays several key roles in preparing, negotiating, and completing a corporate merger. Here are just a few examples:
Performing Due Diligence
Once two companies agree in principle to enter into a merger, corporate attorneys for both sides need to conduct extensive due diligence. Due diligence is a catch-all term that describes reviewing key documents affecting the transaction, such as a company’s financial records, contracts, intellectual property, and pending litigation, among other items. This process is essential in helping the acquiring entity assess any potential risks and liabilities and, at a more fundamental level, works to ensure there is genuine value in the deal.
Handling the Paperwork
You are likely aware that corporate mergers require a lot of paperwork. In broad terms, Texas business attorneys draft letters of intent (LOI) on behalf of each party. This document outlines the key terms and conditions of the proposed merger or acquisition. This is a critical step as it helps ensure both parties are on the same page.
After any letters of intent are signed and due diligence is completed, a business attorney can proceed to draft the contracts. Several contracts may be affected by the deal and need to be reviewed or revised, such as employment agreements for key employees and non-disclosure agreements to protect sensitive information revealed to either side during the negotiations.
Regulatory Compliance
Any merger or acquisition involves some degree of regulatory compliance. This may include filing pre-merger notifications with federal antitrust regulators, making disclosures regarding the sale of publicly traded stocks with the Securities and Exchange Commission, and obtaining approvals from a number of Texas state agencies with jurisdiction over the merging companies and their businesses.
Closing the Deal
The final stage of a merger or acquisition is the closing. This is when both sides execute their final agreements and carry out the necessary transfer of assets and liabilities. Even after closing, however, a Texas business attorney will often continue to play a vital role in helping to integrate the two businesses moving forward.
The sooner you engage a qualified mergers and acquisition lawyer, the smoother your deal will likely go. So, if you need to speak with a Texas business attorney, call SLG today at (512) 881-7500 or contact us online to schedule a consultation.