Many corporate entities decide to merge with other corporate entities when it becomes clear that it is mutually beneficial to do so. A corporate merger is a complicated process with many moving parts. The merger process should be approached with professionals who have experience in corporate mergers, such as the Weisblatt Law Firm, LLC. What benefit does retaining a business attorney provide to a corporate merger?
For on-point guidance and counsel related to corporate mergers, contact the Weisblatt Law Firm today. We’ve worked with many of Houston’s top businesses and are ready to represent yours. Call (713) 666-1981 for a free phone consultation, or use our online contact form.
Minimization Of Risk
Attorneys excel at minimizing risk. Risk is an inherent part of a corporate merger. Corporate entities can have tremendous value, and that value can be lost or destroyed by a failure in the merger process. For instance, a great business attorney will make sure that all parts of the merger agreement are being upheld so that no party will be held in default or, worse, have the deal fall through altogether. When mergers fall through, litigation among the parties often ensues. This can be avoided with an attorney who is a dealmaker, not a deal-breaker.
Compliance
Mergers require interaction with various government agencies. A great many forms will need to be filed with government agencies to recognize the merger and move forward with the new corporate entity. A failure in the application process may mean lost time, lost revenue, or both. Time is critical in a merger, and you want an attorney who knows exactly what to file and when to file to ensure that there will be no government resistance to the merger. The Weisblatt Law Firm, LLC is experienced in the necessary filings for a corporate merger and will make sure everything is done promptly.
Houston-area businesses go to the Weisblatt Law Firm for the guidance they need in complex and standard business matters.
Efficiency
When corporate entities decide to go it alone, without the help of an attorney, the process can often end up taking longer. Since a business attorney assists many corporate entities in the merger process, he or she knows how to efficiently complete a merger. Of course, this involves timely making government filings and minimizing conflict among parties, but it also involves keeping all parties on task and providing the inherent legal framework to a merger.
Legal Framework
A business attorney will provide a legal framework for the merger process that is both necessary and complementary to the merger. The legal framework is an outline that recognizes all parties’ rights, duties, and obligations under the merger agreement. It will be made clear as to what steps every party must take in the merger, and what penalties exist for failure to perform under the merger agreement. This facilitates the merger by ensuring that everyone is actively seeking the success of the merger.
Negotiations
Although parties to a merger may ultimately agree on many points, all merger terms must be negotiated. During the negotiation and setting of merger terms, businesses are effectively defining their obligations to one another. To a large degree, they’re also determining the boundaries of future profitability. In other words, the terms agreed upon during negotiations will have a major effect on all parties’ futures.
Because of this, all parties are strongly advised to secure competent counsel who knows how to aggressively negotiate fair and favorable merger terms for their clients. Effective negotiations involve a proper level of aggressiveness mixed with an appropriate dose of compromise. Experience guides seasoned merger attorneys who are capable of seeing the big picture. For that reason, they understand the effects each merger provision has on their clients’ interests.
Airtight Agreement Drafting
The negotiations that occur during merger talks typically result in a number of documents being produced, depending on the size of the parties involved and their businesses. These documents must be airtight and in full compliance with all relevant contract and business laws. If not, their terms may be of no ultimate legal effect. Some of the many documents business law attorneys draft during mergers include:
- Sales agreements
- Shareholder agreements
- Corporate restructuring
- Buyouts
- Letters of intent
- Non-disclosure agreements (NDAs)
- Confidentiality agreements
- New corporate entity formation
- Lease documents
- Closing documents.
Depending on the circumstances of your business and merger, you may need many of these documents. If so, it is essential to your interests and those of your business that these documents be airtight from start to finish.
Human Resources Matters
Mergers typically can’t help but involve human resources matters. Business owners and operators do well to have their employment law bases covered during mergers and for post-merger business operations. In bigger companies with larger dedicated workforces, a human resources department may be up and running. Attorneys work closely with them to ensure that labor and employment laws and rights aren’t trampled or inadvertently ignored or violated.
In smaller businesses with fewer employees, business law attorneys help owners and operators understand their obligations to workers. This allows organizations to fairly and respectfully consider the needs of their employees during the often confusing times of mergers.
Tax Implications
The tax implications of mergers are many. Local, state, and federal tax laws may come into play during your merger. They are usually intricate and frequently counterintuitive. The experience of a seasoned business lawyer is necessary to identify all tax issues that must be resolved. They will then develop appropriate and effective solutions that protect and address a company’s tax liabilities.
Peace of Mind
Nothing can replace the peace of mind business owners feel when a competent and experienced attorney is handling their legal affairs. You need peace of mind and a clear head during this hectic time so that you can make important business decisions. When an attorney is on board guiding and representing you, you can feel free to focus on the business side of things instead of the legal.
Call the Houston Business Attorneys at Weisblatt Law Firm, LLC, Today to Discuss Your Corporate Merger
A corporate merger is a tremendous undertaking but can be made significantly more manageable with the help of an experienced business attorney. If you are entering into merger territory, you need and deserve experienced counsel to protect your interests.
Weisblatt Law Firm is ready to help you start the next chapter. For a free phone consultation with an experienced Houston business law attorney, call (713) 666-1981. Contact our office today.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
