“An acquisition is taking over a company or real estate. It is done to gain control over the company and its decisions. Thus, a merger and acquisition lawyer helps finalize the deal and prepare the paperwork.”
Has the thought of obtaining another company ever crossed your mind? Also, what is the process to follow if you are interested in acquiring another company? If you have these questions, it is better to gain some insights into the process. You should understand the process of acquisition in-depth.
You might think acquiring a company is as easy as buying the stakes. Thus, all you have to do is prepare some contract to buy the company shares. In the same way, if you are a company wanting to invest in real estate, you might want to buy a commercial property. Hence, you may think it is as simple as selecting and buying the property. Unfortunately, though, the purchase is not as easy as it sounds.
Many types of acquisitions can happen. For example, you want to buy shares in a company to gain control, but they can oppose. Or, in another case, they might propose to join hands, to form another entity. What will happen next? What should be your strategy?
Thus, that is where an expert merger and acquisition lawyer may help. Hence, even if the thought of acquiring a property or company has crossed your mind, it may be time to start searching for a business acquisition attorney near me.
Merger And Acquisition Lawyer – What Are Acquisitions?
The process is called acquisition, when an organization purchases rights to control another firm or company. In the same way, the process of obtaining rights to a real estate property is called real estate acquisition.
When acquiring a company in the USA, you must buy almost 50% of the shares to control the company. Hence, a merger and acquisition lawyer may guide through the process and close the deal with the mutual benefit of both parties. Also, a merger and acquisition lawyer knows the actual worth of the target.
The process of gain may happen with or without the company’s consent. As a result, there are different types and ways they work. Thus, the types of gains are:
Types of Acquisitions
In simple words, it happens with the consent of both companies. Hence, the reliable figures in both companies find mutual ground for settlement. They decide whether to sell an asset or which asset to sell. They may hire an acquisition lawyer, review the statements, and find ways of gaining for both parties. Thus, after constructing a deal with mutual benefit, they proceed with the deal. Furthermore, the organization mostly does not change the name of the acquired company.
A merger is when two organizations work for a separate combined entity. Thus, companies combine their assets to form a new legal entity in this more-than-friendly acquisition. Reliable figures in both parties believe that the newly formed organization will be more valuable than separate companies. Thus, they form a company with equal size, resources, and scale.
Still, the deal does not work in one way only. Mostly it depends on the relationship that both companies have. Thus, there are multiple types of mergers—for example, horizontal and vertical mergers. The deal mostly depends on the companies’ nature and the products’ association. In some cases, companies may not have anything mutual. These types of mergers are called conglomerations. Companies may contact a merger and acquisition lawyer to finalize the deal.
These subtle controls happen when the company does not favor the gain. Thus, the acquired target company does not approve of the gain. In such states, the buying company may purchase shares of the target company to force the Take-Over.
Real Estate Acquisitions
Real Estate Acquisitions occur when a firm is looking for investment in a real estate property. In Real Estate Acquisitions, the process happens through a lawyer. Simply put, it is the process of acquiring real estate, or purchase of equity, for investment. The purchase can be of improved or not improved property. Thus, it is done by investment firms for further investment.
What are some steps of Real Estate Acquisitions?
Of course, there are some steps before real estate acquisitions happen. Thus, hiring an acquisition lawyer may save you from possible problems. Some crucial steps in property gain are:
Do Your Research
The first step in this process is to find the right property. Most people start with a list of criteria and then search for a property that fits specific criteria. Also, some may employ a commercial agent to do it for them.
Because of their expertise and contacts in the industry, an acquisition attorney is best qualified to find the right property. They have years of experience and can find the right property for you.
Do Your Due Diligence
One of the essential aspects of the purchase process is due diligence. It entails a careful analysis of the property from every angle. The process involves confirming revenues. Also, it involves checking the rent to decide whether the property is unpaid. Also, what future capital costs are possible, the contract’s strength, and more.
One must conduct a review of the company and its problems. Also, reviewing the cost of cleaning up any issues discovered during the process must be completed. Survey to ensure that the building is in good working order. Title checking, legal review, and searches are all necessary steps in the due diligence process. It is vital to learn about the property you want to purchase.
Also, a buyer might want to know about any risks, property issues, and challenging agreements. Some problems that might occur at this stage include unsigned contracts, revised contracts, not signed contracts, or title issues. Thus, at this stage, it is a good idea to hire an expert acquisition attorney.
Making a Written Offer and Appraisal
Once you are satisfied with your due diligence findings, it is time to make a written offer. Conduct a property estimate before making an offer and settle on the price you are willing to pay.
If you are dealing with a real estate lawyer, they will handle the deal on your behalf. Hence, they can form the agreement and maintain documents following the deal.
Talks and Settlements
The seller can consent to compromise after you have made your offer. An acquisition attorney will negotiate on your behalf for the best price, and if both parties can reach an agreement, they must finalize the deal. Or else, if the talks do not go well, the contract will fall through. Hence, searching for a business acquisition attorney near me is vital in this key stage. Otherwise, there is a major chance of the deal going wrong.
How Can an Acquisition Lawyer Help?
An acquisition attorney can help throughout the process. From the start, when you select the company to the end, where you make the offer and negotiation happen, an attorney’s skill is required. Thus, some of the aspects that can make you consider hiring an acquisition attorney are:
Examining the Debts and Lawsuits
A lawyer can help you assess the property value before buying it. They can help you find hidden debts, lawsuits, and other difficult contracts. It is essential to understand that minor issues may involve some involvement. However, only a qualified acquisition attorney can help you assess the threat level.
Determining the price
An acquisition lawyer has the skill to evaluate the price of the property. Thus, they can guide you better about the property’s value. They understand that the property’s value does not depend only on its current state. Hence, you must discuss key factors with your lawyer before determining the price.
Documents and Financials
An acquisition lawyer helps in understanding the financial reports of the company. They will make sure that there are no hidden financial statements. Also, they prepare all the other relevant documents required in the deal. For example, an acquisition attorney helps prepare a letter of intent, due diligence paperwork, the model they are proceeding with, and much more.
Frequently Asked Questions about Merger And Acquisition
The subject of merger and acquisition will always remain among the most popular among various business people. In a bid to help you have a vast understanding, we have selected some of the most common questions that are constantly being about them. The details below will highlight and also explain these questions.
What Is The Difference Between Merger And Acquisition?
It has been discovered that many people do not know that these processes are different. For instance, a merger happens when two or more companies come together to become a force in an industry. In this case, a new company or organization will be created. On the other hand, acquisition happens when one company decides to buy another. One thing you need to understand is that both of them have one goal. This is to expand the presence of a company beyond its present state.
What Reasons Are Responsible For Merger And Acquisition Failures?
In case you do not know, not every merger and acquisition is successful. That is to say, there is some that collapse. These usually fail due to some reasons like:
Lack of Owner Involvement
You are expected to hire professional attorneys for any merger and acquisition deal to handle all the technical aspects. However, such doesn’t mean the owner will not be directly involved. The role of an advisor is usually limited in this process. Therefore, it is recommended that the owner is very active.
Inaccurate Valuation of Assets
This is one major reason why many merger and acquisition deals fail. When assets are wrongly valued, it becomes difficult for a potential buyer to project the company’s future. This is why you need a professional to ensure true figures are given on the state of a company you are trying to strike a deal with.
Cultural Integration Struggles
There is something that makes every company unique. This is the area of cultural practices. When they tend to differ, merger and acquisition deals will likely fall through. For instance, company A plans to deal with company B over a possible takeover. However, company B has a problem with the plans of company A to change some of its core practices and values. As simple as this may sound, it has succeeded in hindering many merger and acquisition deals in the past.
Negotiation errors can cause many problems. For instance, it can lead to misunderstandings between parties. Another problem is that it can make you pay more than the company you are planning to take over is worth. It is, therefore, very crucial that your negotiation skills are developed. This gives you an edge in discussing favorable terms.
A professional attorney can help to give you the best advice when it comes to successful mergers and acquisitions. You will strike deals easily with the help of their expertise.
Merger And Acquisition Lawyer Near Me
Finding the professional help you may need in the deal is always a good idea. Thus, contact Attorneys Real Estate Group for expert assistance. Our local lawyers have extensive real estate experience and have worked with our clients in all areas. We strive to provide the best possible service to our clients by considering their objectives and conducting a thorough study of the most efficient means of achieving them.
Whether you are a seller or a purchaser, finding the right agent is key to the acquisition process. You can get a free consultation from experts of Attorneys Real Estate Group. Thus, contact us on our website Attorneysre.com or call us on 916-671-3138