One issue that can kill a real estate transaction is the gap between the offer and the appraisal. Banks typically will only lend the amount they think the property is worth. For example, the buyer's offer for an apartment building may be $10 million, but the bank's...
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What to consider before buying a property with an easement attached
Commercial property with an easement can be an excellent investment, but it is essential to understand precisely how it will impact the property and its value before closing the deal. Easements are legally binding interest in a property that enables non-owners or...
Environmental details impact real estate deals
Property buyers and sellers must understand the impact of environmental regulations when trading in real property, whether for residential or commercial use. Regulations have the force of law and must be followed. Failure to do so sometimes puts a deal in jeopardy and...
What to expect when selling your company to a private equity firm
There are pros and cons to selling your business to a private equity firm. The following is a quick breakdown of what to expect if you choose to go this route. They often will not buy 100% of your business To ensure a smooth transition, private equity firms often...
How could inflation affect mergers & acquisitions?
Global merger and acquisition activity reached a record level in 2021, topping $5 trillion for the first time. Deal making remained strong early in 2022 despite rising inflationary pressures. But that pattern is changing due to multiple variables. Deals are being...
Key differences between privately and publicly held companies
Elon Musk’s $44 billion bid to buy Twitter shocked many by its scope as well as the billionaire entrepreneur’s plans to take the social media giant private. Musk’s plan will remove Twitter from the New York Stock Exchange if the acquisition is approved. It is a move...
Selling a business to a private equity firm
Owners sell businesses for a multitude of reasons. Some may be approaching retirement age, partners may want to remain partial investors but relinquish some managerial duties, or the company needs a capital infusion to stimulate profits and expansion. The traditional...
How do SPACs work?
Special purpose acquisition companies (SPACs) help companies make the leap from privately held to publicly traded entities with less red tape and faster than an initial public offering (IPO). While a traditional IPO process can take several years, a SPAC can usually...
Pros and cons of accepting an earnout when selling a business
Earnouts are typically used in business acquisitions when the buyer and seller cannot come to terms on an upfront cash price. Instead, the seller agrees to accept additional payments after the sale closes as a way to bridge differences over the company’s valuation....
Federal regulators scrutinize large business mergers
On Jan. 18, the U.S. Department of Justice and Federal Trade Commission announced plans to tighten regulations and enforcement over illegal business mergers. The agencies will also ask for public comment on updating current federal guidelines guarding against unlawful...