Mergers and Acquisitions Attorney New York

Empire Business Law

Business owners frequently consider mergers and acquisitions as a strategic move, whether they manage a small business or a major corporation. Merging with another entity is a critical decision that requires thorough planning and meticulous negotiations. Partnering with a seasoned Mergers and Acquisitions Attorney in New York can simplify the process and increase the likelihood of a favorable result.

Mergers and Acquisitions Attorney New York - Empire Business Law

Mergers and acquisitions provide strategic opportunities for buying or selling a business. While both options can be advantageous, the right approach depends on the specific goals of each party. With numerous possibilities to consider, the process can quickly become overwhelming. Working with a skilled Mergers and Acquisitions Attorney in New York ensures you receive expert advice and helps determine the best structure to align with your objectives.

Mergers

In the business landscape, mergers occur less frequently than acquisitions but come with distinct advantages. By merging, two companies unite into one entity, pooling their assets and liabilities without the need for additional capital to sustain operations post-merger. This approach can deliver substantial financial benefits, such as increasing revenue through portfolio growth, cutting operational costs by consolidating resources across teams or departments, and enhancing efficiency by streamlining workflows and reducing disruptions. Collaborating with an experienced Mergers and Acquisitions Attorney in New York ensures a smooth process, helping you capitalize on these benefits while addressing any challenges that arise.

The process generally takes two forms:

Merger: In a standard merger, the management teams and boards of directors from both the buyer and seller work together to negotiate terms and finalize a mutual agreement. Shareholder approval is often a key requirement, with the board and management typically advocating for the merger to shareholders. Engaging a knowledgeable Mergers and Acquisitions Attorney in New York can help facilitate seamless negotiations that align with your strategic business objectives.


Tender Offer: A tender offer allows buyers to bypass the management and board, dealing directly with shareholders. This method is particularly useful when management or directors resist a sale or when swift access to capital is essential. Tender offers generally fall into three categories:

  • Hostile: Launched without approval from the target company’s management.
  • Defendable: Both parties take defensive measures before determining the path forward.
  • Friendly: Both sides cooperate to reach a mutually beneficial agreement.



Choosing the right strategy can be challenging, but with the guidance of an experienced Mergers and Acquisitions Attorney in New York, you can confidently navigate every stage of the negotiation process.

Acquisitions

In an acquisition, one company assumes ownership of another, typically structured in one of two ways:


  • Asset Purchase: This method involves purchasing specific assets and liabilities of the target company. Assets may include inventory, equipment, vehicles, real estate, leases, intellectual property, copyrights, and more. A knowledgeable Mergers and Acquisitions Attorney in New York can assist in thoroughly evaluating these assets and structuring the transaction to meet your objectives.



  • Stock and Equity Sale: In this approach, the buyer acquires the company’s ownership interests (stocks or equity) rather than individual assets. This process transfers full ownership of the business, including all assets and liabilities.


Selecting the right structure is crucial to achieving your business objectives. Working with a seasoned Mergers and Acquisitions Attorney in New York ensures the acquisition is carried out strategically and with attention to detail.

Rights & Liabilities

While mergers and acquisitions are often mentioned together, each leads to distinct rights and obligations after the transaction is finalized. Collaborating with an experienced Mergers and Acquisitions Attorney in New York can provide clarity on these differences and help navigate any legal challenges that may emerge following the deal’s completion.

ACQUISITIONS: In an acquisition, the buyer is not always required to assume the seller’s debts and liabilities, though certain circumstances may lead to this obligation:


  • Continuation of the seller’s business: This occurs when the directors, officers, and shareholders of both companies remain largely the same following the transaction.
  • Fraud cases: Liability may transfer if, for instance, the seller cannot pay its creditors and fraudulent activity is uncovered.
  • Buyer consent: If the buyer agrees to assume the seller’s debts, the purchase price is often adjusted to account for the liabilities being inherited.



Shareholders of the selling company have the right to request an independent appraisal if they disagree with the sale terms. Measures such as requiring approval from a two-thirds majority are often put in place to protect minority shareholders before the deal is finalized. Consulting a skilled Mergers and Acquisitions Attorney in New York ensures these protections are upheld and that the transaction is fair, transparent, and compliant with legal standards.

Boardroom decisions are shaped not only by profit motives but also by a framework of regulations aimed at protecting minority shareholders. These safeguards are designed to uphold the rights of shareholders who may object to specific asset transfers.


In many acquisitions, stock purchases are the preferred method, where the buyer assumes all of the company’s existing debts, including any undisclosed liabilities. This highlights the critical need for thorough due diligence before finalizing a deal. Neglecting this step can lead to unexpected financial burdens, as seen in cases where a company’s obligations doubled post-acquisition due to overlooked liabilities. Engaging a knowledgeable Mergers and Acquisitions Attorney in New York can help identify hidden risks, ensuring a smooth transaction and protecting your interests at every stage of the process.

MERGERS: Similar to acquisitions, mergers come with substantial liability considerations, especially for the shareholders of the company being merged. Shareholders who oppose the merger have the right to request an independent appraisal of their shares, often conducted by a neutral third party, such as a court.


In a merger, the acquiring company assumes all liabilities of the merged company, including pre-existing criminal penalties or tort claims. Any ongoing legal actions involving the merged entity continue seamlessly, as the acquiring company steps into its legal position without requiring formal substitution. Likewise, if the merged company had initiated litigation against a third party, the acquiring company inherits the right to pursue that case.


Given the complexities surrounding liabilities and shareholder rights in mergers, consulting an experienced Mergers and Acquisitions Attorney in New York is crucial. They can navigate these legal intricacies, ensuring a smooth transition while addressing potential risks effectively.

Who Are The Parties Involved With A Mergers And Acquisitions Attorney In New York?

Mergers and acquisitions require collaboration among a variety of professionals to ensure a successful outcome. Key contributors often include:


  • Business Brokers: Brokers assess the value of the business, develop marketing materials for potential buyers, and manage the sale listing process.
  • Investment Bankers: Frequently involved in larger transactions, investment bankers identify prospective buyers, prepare detailed financial documents, and may oversee business auctions.
  • Appraisers: In smaller deals, appraisers are tasked with determining the business’s value and are sometimes engaged by lenders financing the acquisition.
  • Attorneys: An experienced Mergers and Acquisitions Attorney in New York is vital for conducting due diligence, negotiating terms, and drafting purchase agreements and other essential legal documents to safeguard their client’s interests.
  • Other Advisors: Specialists such as accountants, consultants, IT experts, and environmental analysts may also contribute to ensuring the transaction proceeds smoothly.



Given the complexity and the number of parties involved, partnering with a skilled Mergers and Acquisitions Attorney in New York is essential to effectively handle all legal, financial, and operational aspects of the process.

What Are The Main Costs Aside From Legal & Finacial Advisor Fees?

When a company intends to acquire another, it often employs a proxy solicitor to secure the shareholder votes needed to move the transaction forward. Additionally, the acquiring company typically works with an exchange or paying agent to streamline payment logistics during the offer phase.


In mergers, further steps may be required before closing the deal, such as preparing and distributing key documents to shareholders. For hostile mergers or acquisitions, the acquiring company might also engage a public relations specialist to manage communication strategies and shape public perception.


Navigating shareholder approvals, payment arrangements, and public relations challenges can be complex. Partnering with an experienced Mergers and Acquisitions Attorney in New York is crucial to ensure all legal and procedural requirements are fulfilled, facilitating a smooth and efficient transaction.

  • Who Regulates Mergers & Acquisitions?

    Mergers and acquisitions are often reviewed for compliance with federal regulations by various agencies. The Federal Trade Commission (FTC) monitors transactions to ensure they do not harm competition, while the Antitrust Division of the Department of Justice handles cases related directly or indirectly to monopolistic practices in business settings like this one - even if there isn't an outright merger between two companies! Finally, we have Securities & Exchange Commission which watches over public offerings involving stock sales, etc. Mergers and acquisitions also must comply with state laws governing shareholder and board approvals, takeovers, fiduciary duties, and other requirements. The laws of the state where the business is incorporated apply.

  • How Long Does It Take For Mergers To Go Through?

    Mergers and acquisitions can take months to complete depending on the structure of the transaction, applicable legal requirements, approvals needed, conditions on the sale, and whether the acquisition is hostile or friendly. Sellers can speed up the process by compiling all necessary documentation and presentation materials before offering the company for sale. Both sides should also employ experienced advisors to facilitate the transaction.

  • Hostile Vs Friendly Negotiations

    Hostile takeovers are more time-consuming and difficult because of anti-takeover provisions in shareholder agreements, state law as well as federal securities laws requirements. This means that when a company is acquired it may have to go through some administration before the transaction can become final which could lead up an elaborate process but also mean great benefits for both parties involved!

  • Target Defenses

    Regardless of whether the target company was looking to sell the business, the board has a fiduciary duty to evaluate in good faith any bona fide offers as well as to obtain the best value for shareholders. If the board rejects the offer, a buyer may try to proceed with a tender offer instead. However, the board can take reasonable steps to resist the takeover, subject to a court’s enhanced scrutiny of the reasonableness of the board’s actions.


    Mergers and acquisitions can be daunting with complex procedural and legal requirements. Relying on experienced advisors can help ensure the transaction is successful and proceeds as smoothly as possible.

At Empire Business Law, we protect and build a protected foundation for your innovation. You can call our office at (855) 781-7705, Schedule an appointment online - click here or fill out our contact form and we will contact you as soon as possible. Contact us today.

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