Buying a Business: Merger & Acquisition Transactions

Contact Neufeld Legal PC for corporate transactional and legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

Understanding the law and the business deal to facilitate the optimal results from mergers and acquisitions.

Acquiring an existing business is rarely, if ever, a straightforward process; instead, it tends to require considerable investigation and analysis, so as to identify and address existing issues and potential concerns that have the very really possibility of devaluing the merger or acquisition, among a range of immediate and latent effects that might well arise from undertaking the transaction improperly. And even with considerable due diligence, scrutiny and investigation, combined with intense negotiations and the drafting of very decisive legal agreements, there is still no certainty that the proposed business target will in fact perform as intended. Nevertheless, that is the challenge with almost every corporate merger and acquisition, such that the appropriate investigation needs to be undertaken, followed by its integration and advancement within your own business efforts, that will hopefully result in the realization of the intended potential that was the very basis for undertaking the original merger or acquisition.

Readiness for a Merger / Acquisition

If you are considering engaging in a merger or acquisition so as to increase your business' results through expansion, you need to thoroughly determine if your business is truly ready for a merger or acquisition. Factors to consider include the following:

(i) SWOT Analysis. A SWOT [strengths, weaknesses, opportunities and threats] analysis of your business will provide the foundation from which you can determine how your business shall be building upon its strengths, resolving its weaknesses, optimizing its opportunities and avoiding threats. [click here for more on SWOT Analysis]

(ii) External Factor Analysis. Undertaking an assessment of external factors as to how they will impact your business, the amalgamated or merged business going forward and the cost of the contemplated transaction. If is also important to determine how external factors can be curtailed or limited, so as not to impede the transaction and the future growth of the business.

(iii) Availability of Financing. Ascertaining if you have the financing available to complete the proposed transaction and insuring that such financing will be made available on commercially reasonable terms.

(iv) Objective Assessment. Be clear and realistic about your expectations from the proposed transaction. The contemplated merger or acquisition should be consistent with the overall strategic direction of your business.

When it comes to the legal component of corporate mergers & acquisitions, that is when the law firm of Neufeld Legal P.C. comes into play. Such that when your company is seeking knowledgeable and experienced legal representation in orchestrating and completing business mergers, acquisitions and divestitures, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.