Austin Mergers and Acquisitions Attorney
Representing Business Clients in Austin, Texas and Surrounding Areas
Mergers and acquisitions are complicated business matters which involve the purchase, sale, division, or combination of companies done to expedite one's growth or to provide an entry into a new market or location. Where large corporations are concerned, mergers and acquisitions may fall under review by federal agencies, such as the Federal Trade Commission to ensure that competition will still exist in that particular market. Though they are often used interchangeably, mergers and acquisitions are actually separate undertakings. Because of the many complicated legal issues involved, a business that is contemplating either a merger or acquisition should conduct thorough research into the matter to ensure that the process is advantageous and that all legal aspects are known and handled properly.
At the law firm of Sean Gregor & Associates, PLLC, we represent clients of all types and sizes involved in mergers, acquisitions, dispositions and other transactions involving the purchase and sale of businesses. In addition to our legal representation, we work closely with accountants and financial advisors to handle various tax and other issues that often arise with the purchase or sale of a business. Our firm assists clients in all phases of the transaction, from the initial planning and due diligence stages, through the negotiation and execution of the acquisition documents, to the final closing and post-closing matters. An Austin business lawyer at the firm can provide cost effective representation for both buyers and sellers in mergers and acquisitions transactions.
The Difference between a Merger and Acquisition
In a merger, one or more companies join together to form a new business. Each company's assets and liabilities are brought into the new operation, including all real estate and other property. Mergers are governed by state law; failure to comply with state regulations will invalidate such a merger.
In an acquisition, one company buys out or takes over another. This may be done through a stock purchase or through an asset purchase. In a stock purchase, the acquiring company obtains the assets as well as the liabilities of a publicly traded company by paying shareholders for their stock shares. In an asset purchase, assets such as business equipment and / or inventory are purchased with no acquisition of liabilities.
Contact an Austin mergers and acquisition lawyer at the firm to discuss the legal aspects of your potential transaction today.