Structuring An Acquisition Or Merger

Our firm's practice often includes representing clients who are buying or selling a business. It is not uncommon at some point in the life of a business for it to be acquired by new owners. A change of control might relate to a desire to cash out, the need to diversify, retirement or estate planning, or an opportunity to merge the prospects of a business with another. Combining operations might also improve channels of delivery for all parties involved, helping them compete more effectively, or a company might excel further by teaming with another company's management.

How Will Your New Business Be Structured?

Often the fastest and best way to grow a business is to buy an existing operation, rather than building up a sector from scratch. Two ways in which businesses combine are mergers and acquisitions. In a merger, two or more companies combine to form a single entity, while in an acquisition, one company takes over another, but both parties retain their separate legal existence.

The structure of a merger, acquisition or ownership change is of critical importance because it affects the form and liabilities of the ongoing business, the protections available to the former and new owners, and the taxation of each entity and its owners.

Contact our Houston law office at 713-629-9494 or by email.

Covering All Of Your Legal Bases

The vast majority of mergers and acquisitions involve privately held entities. At Stephenson Fournier, we handle mergers and acquisitions on a daily basis where the businesses being bought and sold range in value from several million dollars to several hundred million dollars. Whatever the size and structure of your business, we have the expertise and resources to develop a custom strategy for optimizing the transaction.

In deciding whether or not to proceed with a merger or acquisition, business owners should keep in mind that a business combination could be structured in a number of functionally identical ways, and that different structures can generate different sets of legal protections for owners and creditors.

There are also state and federal regulations that affect business transactions. Among other things, these laws address antitrust, securities and tax issues. Depending on the form the transaction takes, different aspects of these laws can be triggered.

Houston Attorneys Handling Complex Business Transactions

The attorneys of Stephenson Fournier are prepared to handle every aspect of a business acquisition or merger. Our legal representation extends from initial due diligence through determination of purchase price and payment terms; structuring and negotiating the merger or purchase agreement and its representations, warranties and indemnification terms; and optimizing the structure based on tax considerations.

If you are contemplating a merger or acquisition, corporate divestiture, or business purchase or sale, we encourage you to call Stephenson Fournier at 713-629-9494, or contact us by email.