A merger or an acquisition of a massive undertaking. Typically, those trying to arrange a major business transaction spend months negotiating terms and researching business prospects. Often, last-minute challenges are the result of regulatory enforcement. For example,...
Business Transactions
New federal merger rules could lead to more scrutiny
Business mergers have existed for as long as separate companies have. They allow existing companies to expand rapidly and to combine their resources to better cater to consumers. Mergers can be beneficial for organizations but are also sometimes problematic for the...
Choosing the right valuation method during an acquisition
Business acquisitions can make or break the organization that is acquiring another company. The process of purchasing an existing company is a lengthy one that carries a massive price tag. Small oversights and mistakes can lead to massive financial setbacks or...
Why the FTC blocked a recent pharmaceutical merger
Federal laws limit economic activity in cases where businesses might engage in unfair competition or endanger consumers. The creation of a monopoly, especially in the medical industry, is a potentially expensive and dangerous reality for those who make use of certain...
3 risk factors executives may overlook before a merger
The prospect of a merger is an exciting one for executives who are facilitating a transaction. They will potentially see rapid expansion and will gain access to new talent and intellectual property. However, the enthusiasm about the prospective merger does have the...
The role of valuations in merger negotiations
Mergers can completely change the functional abilities of your company and also its financial situation. If you overextend the company financially, it may never recover from the merger. On the other hand, adding new staff and facilities could be exactly what your...
Should your company propose a merger or an acquisition?
Growing a business naturally can be a very slow process. You may need new employees and new facilities to scale up from your current scope of operations. For such growth to occur organically, you may need to invest years of effort and planning. Even successful...
Why you need a partnership agreement
If you are starting a business with someone that you already know well, you may decide that you don't really need a partnership agreement. Maybe this person is a close friend from a business where the two of you already worked together. Maybe they're even a family...
After an acquisition, consider a new noncompete agreement
As a business owner, you know which information you have that is proprietary. You know which trade secrets could harm your business if exposed, and you take steps to prevent that from happening. You may have a noncompete agreement in place with your employees right...
How can you prevent a loss of talent during a business merger?
If you are on the verge of combining your business with another enterprise, the process will likely be complex. There will be intense negotiations regarding is the price that you pay for certain assets or the way that you will run the newly-merged business. You may...