Mayhall Fondren Blaize

Business and commercial law firms guide mergers/acquisition

When a business in Louisiana contemplates a merger or acquisition it may be one of the most important actions that it has faced. In the context of the business and commercial law landscape, the transaction may have a great impact on its industry and the consuming public. That is why the choices, procedures and options selected by the company must be done under the guidance of experienced mergers and acquisitions attorneys from the beginning of the process through to the end.

The economic benefits to a participant in a merger or acquisition can be substantial, with a large influx of capital and a final entity that is bigger, stronger and more versatile than ever before. Often the acquisition of a smaller company or a division of a larger company is accomplished with the goal of expanding into the product line made and marketed by the smaller company or division. A great deal of planning and strategy must go into such a decision so that all future developments are familiar in advance.

In the beginning, counsel and the business owners will consider the kind of transaction to encounter. The transaction can be the sale or purchase of assets as opposed to a stock sale or purchase. The ramifications of each method will have vastly differing results and must be charted out in advance. Specific calculations must be detailed so that a company does not go blind into the complex economic and operational framework of a new business transformation.

In Louisiana and elsewhere, the next stage is the drafting of a letter of intent, which is done by an experienced business and commercial law counsel. The letter of intent will highlight the major concepts and content of the transaction. This sets the stage for the final legal documents that will carry out the accepted changes that are manifested in the letter of intent. During this end stage, there may be a number of drafts of the final documents that are circulated. The parties will have important negotiating input into these legal mandates so that they are comfortable with the ultimate terms that they will be assuming.



Source:, "Mergers and Acquisitions Lawyers: Vital Help for Your Asset Sale or Stock Sale Deal", David O. Klein, Oct. 5, 2017

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