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...
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Business Transactions
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...
New laws that may affect Texas businesses
As a new year begins, several laws passed by the Texas Legislature last year take effect. The new rules may have a wide-ranging impact on many facets of the lives of Texans. Businesses, however, have a duty to understand how they will contend with a new legal...
4 alternative ways to finance mergers and acquisitions
Buying or merging with a company is a popular strategy to make your company grow. However, such transactions can be costly and many entrepreneurs do not have liquidity to pay upfront or do not want to use up cash reserves. Instead of using your company’s profits to...