Contact Us


    What are Mergers & Acquisitions?

    Mergers & Acquisitions

    What are Mergers &#038; Acquisitions?Mergers and acquisitions refer to business transactions that occur as a result of a purchase or takeover of one company by another. A merger or acquisition is combining businesses or absorbing one business entity into the other.

    The transaction enables a business to become bigger or smaller or change its organizational structure. Mergers and acquisitions law involves offering advice to companies on potential mergers and acquisitions.

    In addition, it involves negotiating the transaction as well as the preparation of the necessary paperwork to complete the merger or acquisition.


    What is a Merger in Business?

    A merger occurs when two companies combine to create a new company. After a merger, the two companies combine to conduct business operations together.

    While every merger develops a unique organizational structure and climate, the nature of a merger is such that both companies involved are on an equal plane during and following the merger. Usually, after a merger, the old shares from each company are transferred to create new shares in the name of the new entity.

    There are various types of different business entities that merge. For instance, two companies that are in direct competition to offer the same goods or service might combine to compete together.

    Two organizations offering similar products in diverse markets may combine to expand the market size. On the other hand, a manufacturer might merge with a supplier, or companies offering different but related products to offer combined products in a single territory.

    What is an Acquisition in Business?

    When one company purchases another company and takes over operations, it is known as an acquisition or a takeover. Acquisitions may involve private as well as public companies.

    The acquired company may or may not be open to the transaction. It is known as a hostile acquisition when the management of the acquired company is against the transaction.

    A majority of acquisitions involve an older or larger company taking over a smaller or newer company. A reverse takeover refers to a smaller or younger company acquiring a larger company but retaining the name of the larger company.

    Why do Companies pursue a Merger or an Acquisition?

    Companies might consider a merger or acquisition to enhance their business position. One or both organizations might increase the value of their company due to the transaction.

    The transaction might enable a company to increase the geographical territories where they conduct operations or diversify their interests. The transaction can result in a payday for owners or shareholders of the acquired company.

    Who practices Mergers and Acquisitions Law?

    Business attorneys practice mergers and acquisition law. As a merger or acquisition is a time-intensive and involved process, most lawyers who work on mergers and acquisitions specialize in business law at least if not entirely focus on mergers and acquisitions. But not all mergers and acquisitions lawyers are engaged by large firms.

    A small company that operates in a single geographical territory might use a local, solo practitioner to pursue a merger or acquisition. Alternatively, a large company pursuing a merger or acquisition usually works with larger law firms.





    Spread the love

    Comments are closed.

    Palm Springs

    Indian Wells

    Orange County

    San Diego

    New Jersey

    New York

    Palm Springs
    1800 East Tahquitz Canyon Way
    Palm Springs, CA 92262
    Indian Wells
    74785 Hwy 111, Ste. 105
    Indian Wells, CA 92210
    Orange County
    650 Town Center Drive, Ste. 1400
    Costa Mesa, CA 92626
    San Diego
    121 Broadway, Suite 553
    San Diego, California 92101
    New Jersey
    103 Carnegie Center Blvd., Ste. 300
    Princeton, NJ 08540
    New York
    405 Lexington Avenue, 26th Floor
    New York, New York
    Palm Springs California Law Firm