A Business-First Approach To The Practice Of Law

Legal issues to consider before a merger

On Behalf of | Nov 11, 2020 | Business Law |

Mergers can offer excellent opportunities in terms of growth and taking your business to the next level. However, there are many different issues you need to take into consideration before moving ahead. For example, you need to focus on the legal aspects of the agreement as well as the different obligations that come with a merger. For example, you need to carefully go over the agreement and all relevant details related to the merger. 

You should also look into other topics related to the merger, such as helping staff members adjust to the transition. 

Preparing a sales agreement

According to the Small Business Administration, before business owners move ahead with a merger they have to set up a sales agreement. It is critical to carefully go over the details of the agreement before signing and ensure that all facets of the transaction are covered properly. For example, these agreements include the names of business owners, inventory, assets and liabilities. If certain financial details are excluded from a sales agreement, this can lead to challenges down the road. 

Preparing for other requirements that come with mergers

Aside from a sales agreement, there are other responsibilities associated with mergers. For example, depending on your business structure and the state you are operating in, you have to register with the state. In some instances, business owners also have to reapply for licenses, get new tax IDs and set up new bank accounts. By successfully handling all of these issues, you can avoid setbacks and confusion while working toward a brighter future and watching your company expand. 

Founding Partners Damaso W. Saavedra and Allyson D. Goodwin