Mergers and acquisitions are often good for small businesses. They can get more resources for production and product development and benefit from the leadership of experienced businessmen (presumably from the older, more established company). Still, such agreements are risky considering the large assets at stake. Both sides must agree on the distribution of labor and authority, among other things, and have all of those things in writing before signing a contract.
For these reasons, it is necessary to hire a mergers and acquisitions attorney if you’re a business owner interested in merging with, buying, or getting acquired by another business entity in Indianapolis. These transactions will shake things up for you and your employees. You can, however, manage the disruption and maintain operations if you work with an Indianapolis business lawyer specializing in mergers and acquisitions.
What Can a Mergers and Acquisitions Attorney Do for You?
- Identify and reduce risks.
No matter how well-run and profitable a company sounds, there could still be some issues that you’ve yet to uncover. A merger and acquisitions attorney who’s had years of transactional experience can find these out and bring them in the open for discussion, especially during price negotiations. All business mergers and acquisitions have risks, but you take them anyway because you believe in the potential of the merger. That being said, you must protect your interests and those of the people whose employment is at stake in this transaction.
Your attorney will review the entire contract and pore over the clauses that might hold you to an outcome you don’t agree with. This role, therefore, is crucial in preventing unpleasant, last-minute surprises.
- Negotiate terms and payments.
Business acquisitions are never straightforward. Unless the payment transaction is completed within the week or month, buyers could be paying off the original owners for years. While this is common practice in the industry, it opens up risks for the old owners: what if the business enters another merger before the original agreement has been paid? Will the new majority shareholder change the payment terms? This is just one of the many possibilities that can happen in the period between the merger or acquisition and the final payment. A mergers and acquisitions lawyer can ensure that you get a fair deal.
- Draft contracts and file the paperwork to finalize the agreement.
Business agreements and contracts must be worded accurately. Vague statements can leave room for more negotiations and disagreements in the future. You need business attorneys whose expertise is in drafting contracts for mergers and acquisitions. When you work with such people, you benefit from their knowledge of corporate vernacular and know-how in filing the necessary documents to make the agreement legally binding and final.
- Help ensure a smooth transition and change of structure.
Mergers and acquisitions attorneys can also counsel you on managing the inevitable changes in your business structure. This is necessary if your business employs many people. For all the good that mergers and acquisitions offer, they can also be disruptive and even put into peril the jobs of people who will be considered redundant in the new organization. If you want to avoid this outcome, you must consult all the key players of this transition: your employees, senior management, finance officers, and attorneys.
Hire a Business Attorney in Indianapolis Early in the Process
It’s a mistake to hire a business attorney towards the end of your merger and acquisition. It might be too late to turn back on what you agreed on even if you discover that they’re not the best terms for you. You can avoid such business fiascoes by ironing out a merger or acquisition with a business lawyer by your side from the very beginning. Get in touch with our merger and acquisition attorneys in Indianapolis today. Contact Taylor Chadd Minnette Schneider & Clutter PC at 765.361.9680. You may also contact us via our website.