Mergers & Acquisitions Attorney in Palm Desert, California

Whether you desire to acquire a new business or merge your business with another, examining several factors is crucial in the mergers and acquisitions processes. It’s not uncommon for one detail to slip by, only to cause problems down the road. Prevent these problems by partnering with an experienced business law attorney.

Attorney Jerry J Goldstein has spent decades representing businesses throughout Southern California. Our small and specialized firm can seek to provide your business the dedicated attention it deserves. The Law Offices of Jerry J Goldstein are proud to serve clients throughout the Coachella Valley including Palm Desert, California, as well as communities in and around Imperial, Los Angeles, Orange, Riverside, San Bernardino, and San Diego counties, among others.

Essential Elements of Mergers & Acquisitions

As you consider entering into the mergers or acquisitions process, there are essential elements that you should be aware of as you make these complex decisions to prevent any complications.

Financing

Financing is perhaps the most important component of every merger or acquisition. In situations, finding the right financial structure can be quite difficult. One company can buy another using cash, stocks, assumption of debt, or a combination of these methods. Financing rounds can include these methods and others, such as bond issuance and loans. An experienced mergers and acquisitions attorney can help you determine the best path forward to financing.

Business Structure

The operations involved in a merger and acquisition usually have different business structures, including hierarchy levels, management systems, the chain of command, job structures, and roles. In response to the merger or acquisition, identical departments will either be merged or eliminated. Employees may have to leave the company or perhaps take on new positions within the business.

Compliance Issues

As you negotiate the merger or acquisition, you will need to make sure you are entering into an agreement where you can be confident that your new business will comply with legal requirements. Consider how you will negotiate both cybersecurity privacy and data privacy in the agreement.

Documentation

The documentation involved in mergers and acquisitions is extensive. To begin with, the buying company needs to prepare a letter of intent. You must develop an acquisition agreement, articles of incorporation, and other documents. The selling company needs to maintain a list of all IP and related documentation.

Due Diligence

Due diligence is a principal part of the mergers and acquisitions process, which involves developing a due diligence checklist. Due diligence procedures possess intense and thorough investigations regarding employee information, intellectual property, capitalization tables, and more. The valuable information gathered during the due diligence process should remain confidential.

Potential Pitfalls

In the excitement of acquiring a new business, it may be difficult to anticipate the pitfalls of mergers and acquisitions. Unfortunately, issues arise constantly in this process. Business leaders must be prepared for a variety of pitfalls after a merger or acquisition.

In some cases, there are problems with combining two different business cultures. It’s also important to remember that a merger with a big company will not necessarily automatically solve all the smaller business’s problems.

Lastly, inadequate legal protections can harm a merger or acquisition. To prevent this, follow a thorough due diligence process and consult with a knowledgeable mergers and acquisitions attorney to determine transactions are documented for maximum protection.

Please note that in providing services outside of our immediate area we generally don’t bill for travel time from our offices to meet at the business location or home of our clients.