Ocala, FL Business Mergers
Business mergers can work well for your company, allowing you to partner with a competitor and reach new heights. But if you merge with the wrong company, fail to fully assess your own liabilities and assets before merging, and/or sign a contract that does not fully uphold your interests, you may be in big trouble. Before making major decisions for your business, you should contact an experienced business law attorney to ensure that a merger is the appropriate thing to do at the appropriate time under the appropriate conditions.
Florida Business Merger Attorneys
A business merger is the combining of two companies or entities. Reasons to combine companies may vary. Most business mergers are performed to maximize profits and increase clientele. The idea is that by merging together, two companies can achieve more and reap more than as competitors or otherwise separate entities.
There are many different types of business mergers. The most common are vertical mergers, horizontal mergers, and conglomerate.
Vertical mergers require two companies with similar goods and services to partner together transforming a competitive relationship into a partnership.
Horizontal mergers require two companies that rely and depend on one another to merge together. An example of this may be a grocery store and a food supplier. By merging together, the two companies can create a cohesive unit that is less costly and more convenient for customers, thereby increasing profits.
Conglomerate mergers typically involve the merging of companies that are absolutely unrelated. The two companies either have nothing in common or they are looking to expand their line of products and services. An example of this may be a sneaker company partnering with a sports drink company.
Why You Need a Business Merger Lawyer
Whether you are interested in vertical, horizontal or conglomerate mergers, you need a business merger attorney to help you make a wise decision. Mergers can be devastating to companies if not properly arranged.
- Your financial statements must be audited. Before merging with another company, you must first be able to show that you *and your desired partner) are financially sound. An experienced business lawyer can access your financial documents, tax statements and assets to ensure that you are able to afford such a major transition. Are your taxes paid? Are you in debt? Are there discrepancies in your financial records? Business lawyers are trained to extensively review financial documents and make sound recommendations.
- Your contracts should be well-written. Merging with another business entity is far from easy. Before anything becomes definitive, lots of negotiation occur to draft a contract that protects both companies. A lawyer can make sure that your business contract considers everything. How will incoming profits and expenditures be distributed between the two companies? How will employees of both companies be paid and when? How will the companies handle an unforeseen disaster?
Contracts must answer many, many questions to guide both companies in their new venture. An experienced business attorney can verify that the terms and conditions of your contract is thorough, legally valid and fair. He/she can protect your company’s investments, rights, privileges, assets and overall reputation.
Ocala, FL Business Merger Attorneys
You have worked hard throughout the years to build a successful company. If you are going to merge with another company, you have to be positive that your company will benefit from the partnership. You must also be certain that your co-entity is financially sound and has the ability to make the partnership work. You do not desire to carry dead weight or become a lopsided company. Are you making the right decision for your business?
An experienced business merger attorney at Schatt Hesser Mcgraw in Ocala, FL, can help you make the right move in the right way. Contact us today.