Acquisitions

An acquisition is the process of 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 in finalizing the deal and preparing the paperwork.

Has the thought of obtaining another company ever crossed your mind? Also, if you are interested in acquiring another company, what is the process to follow? 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 the property and buying it. 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 their 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 the time to start searching for a business acquisition attorney near me.

Merger And Acquisition Lawyer – What Are Acquisitions?

When an organization purchases rights to control another firm or company, the process is called acquisition. In the same way, the process of obtaining rights to a real estate property is called real estate acquisition.

When acquiring a company, you have to 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, types of gains are:

Types of Acquisitions 

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. In the process, they may hire an acquisition lawyer, review the statements, and find ways of gain 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.

Mergers

A merger is when two organizations come together to work for a separate combined entity. Thus, in this more-than-friendly acquisition, both companies combine their assets to form a new legal entity. Reliable figures in both parties believe that the newly formed organization will be more valuable than separate companies. Thus, they form a company with an equal amount of size, resources, and scale of operations.

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 mergers and Vertical Mergers. The deal mostly depends on the nature of the companies and the association of the products. 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. 

Take-Overs

These not very subtle controls happen when the company is not in favor of the gain. Thus, the target company that is acquired does not approve 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. In simple words, 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 be a wise idea to save yourself 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 if the property is unpaid or not. 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. Conduct a building 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 any risks, property issues, and challenging agreements. Some problems that might occur at this stage include unsigned contracts, revised contracts, not signed contracts, or titles 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 the findings of your due diligence, 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 in accordance with 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, in this key stage, searching for a business acquisition attorney near me is vital. 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 very 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 in finding any hidden debts, lawsuits, and other difficult contracts. It is essential to understand that there may be some involvement of some minor issues. However, only a qualified acquisition attorney can help you in assessing the level of threat.

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 also 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 one of the most popular among various business people. In a bid to help you have vast understanding, we have selected some of the most common questions that are being constantly 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 decide to come together to become a force in an industry. In this case, a new company or organization will be created. Acquisition on the other hand, happens when one company decides to buy another company. 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 some that collapse. These usually fail due to some reasons like:

Lack of Owner Involvement

It is true that you are expected to hire professional attorneys for any kind of merger and acquisition deal to handle all the technical aspects. However, such doesn’t mean that 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 that will 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 be different, merger and acquisition deals are likely to fall through. For instance, company A is planning to strike a deal with company B over a possible takeover. However, company B has problem with the plans of company A on changing 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.

Poor Negotiation

Negotiation errors can cause many problems. For instance, it can lead to misunderstanding 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 to discuss terms that are favorable.

A professional attorney can help to give you the best pieces of advice when it comes to successful merger and acquisition. You will strike deals easily with the help of their expertise.

Merger And Acquisition Lawyer Near Me

It is always a good idea to find the professional help you may need in the deal. 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