Business Mergers: Challenges and Opportunities

A business merger may seem like the ideal way to either grow your business or acquire help in operating it, but just like any marriage, the union of companies can experience unforeseen complications. Joining separate businesses may create challenges that risk both immediate and long-term success as well as frustrate the parties involved. An experienced attorney can help business owners execute a business merger as well as avoid some of the typical problems that they might otherwise encounter during this kind of transaction.

For example, a business merger means accepting not only the good but also the not so good that another company brings to the consolidation. While collaboration can present the chance to reap more revenues, it can also require assuming more debt. Sometimes so much attention is paid to the art of the deal that business owners fail to conduct the due diligence necessary to know what, if any, liabilities they will become responsible for after the business transaction. An attorney can oversee the review of financial records like cash flow statements and balance sheets as well as the analyze legal documents like contracts and intellectual property paperwork so that owners know exactly what the business merger will mean for them strategically and operationally. This kind of vetting helps reduce their exposure to risk and protects them from entering a business merger that could ultimately prove more troublesome than rewarding.

A business merger could also be subject to federal inspection. Agencies like the U.S. Department of Justice and the Federal Trade Commission want to ensure that mergers do not violate antitrust laws that promote fair competition and monopolize the marketplace to the detriment of consumers. The guidance and counsel of an experienced business attorney can help business owners understand the complexities of antitrust legal matters so that their merger complies with the law.

And although maybe over and done, a business merger can still present post-transaction issues that owners may overlook in the excitement of bringing their businesses together. Owners frequently neglect activities that, although seemingly simple, are nonetheless critical to the collaboration. For instance, a merger may require license transfers, re-registration of property or new vendor and employee contracts. Handling these matters may seem like common sense, but forgetting to do so can stymie even the most lucrative of partnerships and create barriers to profitability. An experienced attorney can ensure that these details are handled so that business owners can instead focus their attention of delivering services and maintaining their competitive edge.

Brokering and executing a business merger requires the expertise, thoughtfulness and insight that a skilled Texas business attorney can offer. While business owners understand consumer needs and how best to meet those demands, an attorney understands what it takes to unify businesses so that owners and customers alike experience a win-win. Seeking legal advice not only makes sense for the parties directly involved in a business merger, but also for the individuals they currently and could potentially serve once they come together as one.