Acquisitions, Disposals and Mergers

If you are considering an acquisition or merger, or you wish to dispose of your business, then you need expert legal advice. A solicitor can handle the many legal complexities involved, guiding you from start to finish. This will ensure you get the best deal possible, helping you save time and money.

Acquisitions.

If your company or business is successful and looking at ways to expand, then an acquisition may be the way forward. In contrast to a merger, an acquisition sees one company buy the assets of another. This means that rather than the business being a shared enterprise, the company making the acquisition is left with complete control.

Before approaching a business with an acquisition proposal, it is vital to both plan and research. This is to ensure you find the right business to acquire, as making the wrong choice could prove costly. An adviser - such as a solicitor or an accountant - can assist you with this process by using their professional knowledge to anticipate any risks or pitfalls.

A solicitor can then negotiate a deal on your behalf, before handling the many legal aspects involved in an acquisition. This will include carrying out due diligence, reviewing the sale documentation, and dealing with any commercial premises.

Disposals.

If you are thinking of selling your business, your priority must be maximising your return. In order to make the most out of your investment, the first step is to get a business valuation. You can then begin to plan for tax, as making the relevant tax savings can help to significantly increase your capital.

Every disposal is different, and will vary according to the nature of the business. No matter what the size, however, it is still prudent to seek legal advice. A solicitor will be able to prepare the legal documentation for you, including:

* Drafting contracts;

* Transfers of undertakings;

* Warranties and indemnities;

* Heads of agreement;

* Exclusivity agreements;

* Confidentiality agreements;

* Letters of intent;

* Advice on tax law;

* Selling commercial premises.

Mergers.

A merger involves two companies coming together and integrating, forming one new company. This can be beneficial in the long-run, as a successful merger will cut costs, reduce competition, and increase your market share. For many a merger also has the added benefit that control of the company is shared. This can be advantageous for those who do have the finances to acquire another business outright, but do not want to relinquish control all together.

As with an acquisition, a merger should be preceded by planning and research before a deal is negotiated. A solicitor can advise on all these aspects before guiding you through the legal stages.


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Gary Storer is Practice Manager for Pearson Rowe Solicitors Birmingham.