We at Progeny Law Firm take great pride in the services we offer our clients, yet know many throughout Baton Rouge, LA, and beyond want to discover more about mergers and acquisitions and all it can offer their business.
We have prepared this article to give a brief overview of the practice area and address some questions we have found many people have.
As good as this overview may be, please do not mistake it for legal advice or use it to replace direct counsel from your own mergers and acquisitions claims attorney. Every case and the surrounding details are unique. Although there are general patterns across mergers and acquisitions, there are countless instances where the complexities of a specific case prove that a one-size-fits-all mindset may not be the best one to have.
What Is Mergers And Acquisitions Law?
Mergers and acquisitions is technically not its own practice area but falls under corporate law. As the name suggests, it is the part of corporate law concerned with a company purchasing another and merging two or more existing companies into one unit. Businesses involved in a merger or acquisition frequently go on to flourish if a merger or acquisition is successful. On the other hand, however, it is a process that brings with it tremendous risk.
What Parties Play A Role In Facilitating Mergers And Acquisitions?
There are generally five entities involved in a merger or acquisition. However, the size or valuation of the potential transaction may determine whether all of these entities are active in a specific case.
This includes individuals with titles with a “C” in them, such as CEO or CFO. These individuals are involved in the mergers and acquisitions process by virtue of the level of their involvement with the company.
Business Unit Leadership
The business unit leadership comprises general managers and vice presidents of the many departments of a business. Its role tends to be more critical as the process concludes, as it determines how operations and duties will change after a deal successfully concludes.
Corporate development denotes those involved in day-to-day negotiations of a merger and acquisition, commonly the legal team, whether in-house or not. This may also include investment bankers and consulting firms. Corporate development usually defines the company’s priorities and how it will attain them while playing a significant role in determining an acquisition’s price and who to include in negotiations.
Mergers and acquisitions lawyers do various things to facilitate successful mergers or acquisitions. They work on behalf of the business in question to determine the best financing options, as well as guide it through things like purchases and sales. These can be rather involved and perhaps the most complicated thing a business can undergo, requiring contracts to be drafted, negotiated, agreed to, then performed. A mergers and acquisitions lawyer will help their client remain compliant throughout the entire process, ensuring they mitigate risks and position themselves as best as possible. The cost of mergers and acquisitions lawyers may be high. But hiring one is much less expensive than forgoing hiring one and incurring the expense that doing so would more than likely bring with it.
Transaction leads are usually involved at the end of the merger or acquisition process. They process paperwork while ensuring everyone is on track and that everything runs without issues.
External advisers weigh into the process when expertise is needed for a specific element of a deal and counsel companies when they need more knowledge to make a sound decision.
Contact Us Today
Mergers and acquisitions are complicated things to handle at all, let alone on your own with no previous experience. Contact us today if you have further questions or need legal counsel or services.