Practice Area Overview A merger or large acquisition is a significant event in the life of a company and its numerous constituencies. It can affect everyone from shareholders, directors and managers to employees, customers and communities. Also called business acquisition lawyers and acquisition attorneys, these legal professionals provide useful guidance throughout this complex process. Transactions can involve public or private companies.
The legal environment for the public company merger and acquisition activity in the United States has changed dramatically over the last several years. This process of change continues apace. We work with our clients to evaluate the strategy and tactical advantage of a friendly versus hostile transaction.
They play a key role across the entire process by which board decisions are made. This includes board and management counseling throughout the process on legal obligations, evolving corporate governance standards and shareholder relations. Namely, the consolidation of two organizations into a single entity. Mergers refer to the coming together of two previously separate organizations. These combined companies establish a single business name and legal entity that represents their new structure.
Acquisitions involve one business purchasing another. The purchased business may eventually cease to exist as a distinct entity. It is absorbed by the organization that acquired it.
A hostile takeover is an example of an acquisition. However, acquisitions are not always adversarial. Businesses may want to gain access to innovative technology or intellectual property, among many other objectives. Acquisitions are more common than mergers. However, the term merger is often used to refer to both processes in casual settings. Acquisitions are sometimes thought of as an aggressive or negative process. Negotiation can also require a significant investment of time and effort.
