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Structuring a Merger and Acquisition

Mergers are a very common occurrence in the world of business. When a merger takes place, more than one business has joined forces to create a new business, also known as a legal entity. Mergers are often very complicated and have a lot of facets that must be dealt with all at once. These mergers will usually involve legal documents, key deliverables, valuation, operational logistics, payments, and financing, along with regulatory matters.

Structuring a Merger and Acquisition Transaction

An acquisition or a merger is a blanket name that is often used to describe a few different kinds of actions. Some activities that fall under mergers and acquisitions would include:

  • Making a proposal to purchase
  • Partial or complete buyout
  • Business restructuring
  • Negotiating a stock purchase or buyout
  • Taking a company public
  • Making a company private and any related buyouts
  • Creating a subsidiary or spin-off
  • Auction
  • Takeover
  • Divestiture

Every of these actions will need its own particular set of legal papers. Your California business attorney will be able to help you ensure that you have the appropriate paperwork ready to go, that you are following the law and that your investments are well guarded.

Working with Regulatory Agencies

Based on the kind of action you plan on taking, the purchase price, and type of corporate entity, your mergers and acquisitions venture might necessitate regulatory notice and compliance. A qualified business attorney will be worthwhile in helping to figure out and interact with the following regulatory agencies:

The Securities and Exchange Commission

The Securities and Exchange Commission is the federal body whose job it is to ensure that any merger activity is legal and does not violate any federal securities laws. Security laws assign safeguards and rules to the securities trade in order to make sure that investors are guarded, certain acknowledgments are made and the deals being made adhere to the law. Some unlawful actions involve insider trading depreciating stocks improperly. It is also necessary to work with a business attorney on making sure that you are in compliance with any relevant blue sky laws.

Federal Trade Commission

The Federal Trade Commission manages business transactions in order to make certain that the transaction is in accordance with several federal laws. Most of the Federal Trade Commission laws Structuring a Merger and Acquisitionrevolve around fair competition and anti-trust. Your mergers and acquisitions transaction might entail reporting to the Federal Trade Commission. This is invariably the case if your transaction is a merger of many businesses in the marketplace into a new single company.

Tax Implications

Many corporate activities also bring about various tax requirements. You have to remain up to code with every tax requirement, but as a business will also want to reduce taxation as often as you can.

Representation for Your Corporate Merger

The Leiva Law Firm regularly counsels its clients on mergers and acquisitions. These complicated business dealings often demand regulatory, monetary, and legal paperwork. Leiva’s business attorneys are able to aid you during every portion of your business deal. Get in touch with us today at 818-519-4465 or via our online contact form. Our attorneys speak English and Spanish.


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