12 Mar Mergers and Acquisitions From An Attorney’s Perspective
In today’s business world, mergers and acquisitions appear frequently in the weekly news cycle. No longer exclusive to large corporations, M&A transactions directly affect many small businesses — especially technology companies — who may consider these once rare options in order to compete, thrive and survive.
Most mergers and acquisitions create very complex legal scenarios. As such, merger and acquisitions lawyers, or M&A lawyers, become invaluable as they assist clients with the legal processes of the confusing transition and help explain the legalities of these transactions.
Mergers, also called consolidations, arise when two companies join forces to conquer a market as a new, usually stronger company. Neither of the previous companies remain independent. With acquisitions, or takeovers, one company acquires the assets of the other company through a purchase of the company. These acquisitions can either be public if the acquired company publicly traded stocks, or private if not. Acquisitions categorized as ‘hostile takeovers’ mean that the other company purchased the company with malicious intent.
The Federal Trade Commision, or FTC, looks over the transactions and determines if it complies with fair competition and antitrust laws. The Securities and Exchange Commission, or SEC, determines if a purchase made used illegal activities such as insider trading.
The Importance of M&A Lawyers
So, what makes a M&A lawyer so important? Morant Law guides business owners involved in mergers and acquisitions with the legalities of the process to ensure the transition completes smoothly and conflict-free. Our attorneys give their clients a timeframe of what to expect, and advise on negotiations. They also conduct due diligence on the other side, and obtain third-party consents from parties to other contracts. If the merger or acquisitions proves promising, they help close the deal and announce publicly.