Fresno Mergers & Acquisitions Lawyer

A Fresno mergers and acquisitions lawyer can be an invaluable resource if you are considering a merger or acquisition for your business. If you have been offered a merger or acquisition opportunity, utilizing the services of a lawyer to help with these often-complicated business transactions could help reach a successful outcome. With the help of the team at Fishman, Larsen & Callister, you can ensure your business strategy is protected.

A merger or acquisition can come with several substantial benefits. They include:

• An increased market shares. This is one of the most obvious types of benefits. By combining businesses, the market share and customer base is expanded.
• Access to new talent. While a merger or acquisition often leads to job cuts because of operational efficiency, it also provides the opportunity for companies to retain key talent. Multiple companies bringing their talent together can lead to greater ideas and opportunities.
• New markets. This benefit applies mainly to acquisitions. As companies look to achieve growth, one way to quickly grow into a new market is with an acquisition. This can help a business break barrier to entry and skip the organic growth model followed by competitors.
• It’s generally good business practice to diversify assets. A key benefit to a merger or acquisition is that it brings new tools, services, products, and ideas under a business’s umbrella.
• Increased operational efficiency. The idea behind a merger or acquisition is to reduce costs and increase profits. By operating on a larger scale, the new company should have increased bargaining power with suppliers and more access to capital, potentially increasing its profitability.

These are just a few of the benefits that a merger or acquisition could bring to your company. With our help, you can ensure your business continues successful growth by capitalizing on these benefits.

Although there are many potential benefits to a merger, there are also potential drawbacks that must be considered before entering into an agreement.

• Cultural differences. If the businesses have conflicting cultural values it could lead to a convoluted brand identity, company moral, and overall mission execution.
• Financial risks. A merger or acquisition transaction can be expensive. There are several hidden or unexpected costs that can arise, such as overpaying for the target business, discovering hidden liabilities, or taking on too much debt. These risks can substantially impact the financial viability of the deal.
• Integration issues. It can be a complex endeavor to integrate multiple companies. It can become a time-consuming process that brings on unintended delays and higher costs.
• Job cuts. Many times, a merger or acquisition requires job cuts from each company. As companies come together, there isn’t a need for the entire workforce of each company. There is likely to be job duplication (two or more employees performing the same job function). There are also benefits and healthcare costs to consider. Because of these reasons, it’s an unfortunate reality that many employees will likely be let go.

If you are considering a merger or acquisition, a Fresno mergers and acquisitions lawyer can help evaluate your business structure and outline the potential challenges and benefits based on your unique circumstances.

The difference between a merger and an acquisition is that a merger happens when multiple companies decide to combine their efforts into one new entity. Companies will combine their assets, liabilities, and workforces. Each company is giving up some of their individual power in pursuit of certain benefits such as increased market share or revenue growth.

The newly created entity typically has a new name, management, and ownership structure which should include people from each company. Mergers can take several months or years to finalize depending on the complexity of the situation.

An acquisition happens when one company decides to acquire another. This can be done through the purchase of a company’s assets or ownership shares. One company is taking over another, and this can happen in a friendly way, or it can be hostile. Companies do this to gain technological advantages over their competitors, acquire a new product or service, or increase their market share and profitability. These can also take several years to finalize, depending on the case.

An M&A lawyer is a legal professional who helps with the legal business transactions of a company. These transactions can be mergers, acquisitions, minority investments, partnerships, joint ventures, and more. A lawyer can provide counsel and guidance throughout the process. A lawyer can serve as an advisor, mediator, or negotiator during the transaction.

• Advisor. As a trusted advisor, a lawyer can thoroughly investigate all companies involved. This includes analyzing financial statements and identifying key assets and liabilities. They can spot any red flags or serious issues that should be discussed before proceeding. They can also work with other lawyers involved in the transaction to ensure efficient communication. Carrying out due diligence, structuring the deal, and ensuring legal compliance are just some of the tasks of a lawyer.
• Mediator. A lawyer is often expected to manage the communication between parties. The lawyer’s responsibility is to protect their client. This means they must consult with accountants, brokers, bankers, and any other parties related to the deal and ensure they are capable. Leading communication, resolving disputes, and managing potential conflicts of interest are some of the mediation duties a lawyer can provide.
• Negotiator. A lawyer must negotiate on your behalf during this process. Terms, timelines, and objectives must be discussed and decided on before an agreement can ensue. While negotiation can happen early in the process, it can take a long time to reach an agreement. Many other aspects of the deal are usually being worked on while negotiations are happening. Creating a winning negotiation strategy, advocating for your interests, and documenting all forms of communication are some negotiation duties a lawyer can provide.

These services help a lawyer ensure that you and your company are protected throughout the process and that any contracts or legally binding documents are fair and equitable.

Q: How to Identify a Potential Merger or Acquisition Target?

A: There are several signs that can help you identify a potential merger or acquisition business. If there is a business, you believe would be good to merge with or acquire you should first review the financials. This includes balance sheets, income statements, and cash flow statements. Gain as much of an understanding of the operations as possible. This could help you identify the financial strengths, liabilities, and risks of the company, giving you negotiating power and leverage during the discussions.

Q: How Should I Prepare for a Merger or Acquisition?

A: Planning for a merger or acquisition can be a complicated process. You should first engage the help of a qualified business law attorney. These types of transactions require substantial legal and compliance requirements. There are also tax, estate, and insurance implications to consider. An attorney can provide the legal counsel needed during this time. They can prepare you for the potential legal risks and challenges you may face. Next, you should evaluate the financial impact of the transaction and determine if it makes sense.

Q: How Do I Determine the Fair Market Value of a Company?

A: There are a lot of factors to consider when determining the fair market value of a company. Before any merger or acquisition takes place, the fair market value of all companies should be determined. One way of doing this is to review the financial information of the company. Research the company’s competitors in the industry. There are also valuation models available to help determine the true market value. You should do this for your own company as well, for negotiation ammunition.

Q: Why Do Companies Merge?

A: Companies merge for several reasons. One reason is increased market share and increased profits. For companies that offer similar services and products, a merger could offer them opportunities for growth and increased profits. A merger could also offer new products, customers, and increased brand recognition. When companies decide to merge, they usually do so with the understanding that the new company will be much more valuable, operationally efficient, and primed for growth. An attorney may be needed to help facilitate the merger.

Q: Are Mergers and Acquisitions the Same Thing?

A: Although they are typically used in conjunction with each other, mergers and acquisitions are two distinct types of business transactions. A merger happens when two or more entities decide to join to create a new corporation. An acquisition happens when one business acquires or purchases another. These are different types of business formations, but they both will often require help from experienced legal counsel, especially if they proceed through litigation.

merger or acquisition may be the right step for your company. Although these transactions are commonly associated with large corporations, small and large businesses alike can benefit from such transactions. An attorney can help review your company’s formation documents, financial statements, and business plan and help you determine if a merger or acquisition is necessary.

The legal team at Fishman, Larsen & Callister has decades of legal experience under our belts. We have helped clients across California with their business law questions. We take pride in serving our clients and providing the highest quality of legal representation. With our compassion, dedication, and determination, you can rest assured that you are getting quality legal advice. Contact us today to see how we can assist you and your business.