You want to take over a business, merge your business with another, or break off from a business partnership. A business lawyer can help you make this process pain-free.
How should you proceed?
- Before making any decisions about the fate of your company, you should hire a business lawyer who specializes in mergers and acquisitions.
- Ask about any up-front fees, taxes and cross-border taxes that your lawyer may charge. Make sure the firm you hire does not have hidden fees.
- Ask about the firm’s history of successful merger and acquisition closures, as well as the expected duration of your case’s procedure to closure.
- Your lawyer will need as much partnership documentation as possible to help you obtain a fair settlement, so be sure to have any pertinent accounting, tax and other partnership contracts ready.
For a Takeover:
- Have your lawyer negotiate with the target company about the process of the acquisition. Discuss and outline the terms of the purchase.
- Buy the “Target” company’s shares—a “Target” company is one that you want to take over. It is important to consider not only the company’s potential, but also its weaknesses; once your takeover is successful, you will be responsible for any financial risks as well as gains.
- Buy out the Target’s assets. Keep in mind that you will be responsible for paying taxes on the assets.
For a Break Off:
- Your lawyer will obtain documentation concerning your rights and responsibilities. Be aware of terms and conditions such as the “sharing of profits,” “sharing of losses,” your “partnership liability” and anything else that may have been outlined in your original partnership contract.
- If you had indemnity insurance with your partner, be sure to close your account.
How Will a Lawyer Help You?
- In obtaining and filling out the appropriate paperwork. A lawyer will ensure you get everything you deserve, as well as help you to protect yourself in case you are audited in the future.
- In obtaining a Business Acquisition Report and a Business Valuation of the business you are taking over.