Gaining business acquisitions requires experience and special skills. It is not an entry-level endeavor. To start, a buyer needs to identify potential targets that fit the buyer’s criteria. This requires researching businesses in an industry or geographic area or looking through a list of specific businesses that are known to be available. Once potential acquisitions have been identified, with due diligence, the buyer will evaluate the business’s financial and operational performance and its legal and regulatory compliance. This involves reviewing financial statements, contracts, customer lists, intellectual property, and other relevant information.
After the purchaser has completed its research and due diligence and is satisfied with the target acquisition’s performance, it will engage in negotiating the terms of the purchase agreement, typically including the purchase price, payment terms, contingencies, and other points. Attorneys will draft legal documents to formalize the transaction. Key documents that will be part of the acquisition include:
- the purchase agreement,
- non-disclosure agreements
- employment agreements
- assignment agreements
Once the parties have finalized all legal documents and all necessary regulatory approvals have been obtained, the parties are ready for closing. This typically involves payment of the purchase price and transfer of ownership of the business to the purchaser.
Attorneys Play a Crucial Role in Business Acquisitions
Attorneys can help plan and document business acquisitions in many ways. An attorney can conduct due diligence on the acquisition’s target with the goal of identifying any legal risks or liabilities that could threaten the acquisition or make the business undesirable. They can review contracts, leases, intellectual property, and other critical documents to ensure that the purchaser is fully aware of the value of what they are purchasing. An attorney can review a proposed purchase agreement that the seller provides, focusing on the terms of the acquisitions, including the purchase price, payment terms, and any contingencies. They can also handle the negotiation of the terms of the agreement with the seller’s representative to ensure that their client’s interests are protected.
Depending on the nature of the industry and the type of acquisition, there may be regulatory requirements that have to be met before the acquisition can be completed. An attorney can help navigate these requirements and ensure that all essential approvals and filings are obtained. After the acquisition is complete, legal counsel can provide continuing support to ensure that the buyer is compliant with all applicable legal requirements and to address legal issues as they arise.
In summation, an attorney can provide invaluable guidance and expertise from the beginning of the acquisition process until the end, from due diligence to post-acquisition integration. They can help make sure that the purchaser’s interests are protected and that the acquisition succeeds.
Planning and Documenting Experience
To make sure that a business acquisition goes smoothly, effective planning and detailed documentation are critical. Our lawyers have significant experience making sure acquisitions go smoothly and successfully. We have counseled many clients on these and other essential matters. We are happy to assist by answering your questions, providing legal advice, and examining business acquisition goals.
We are delighted to take action to help advance you toward those objectives. Call the trusted attorneys at Lowthorp Richards at (805) 981-8555 or fill out our online contact form. We operate primarily in the Tri-Counties area – Ventura, Santa Barbara and San Luis Obispo