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Dallas Business Lawyer Answers FAQs about Mergers & Acquisitions for Buyers

Dallas business law attorney, Richard “Ric” Armstrong, addresses some of the important issues a buyer needs to know when acquiring another company.

The process of buying, selling or merging businesses is complicated at best, fraught with potential legal pitfalls. A seasoned mergers & acquisitions (M&A) attorney should always be involved in these transactions to make sure your interests as a potential buyer are protected. For now, let’s look at a few of the most common questions buyers ask regarding M&A.

What should I be looking for when doing my due diligence?

Due diligence is a key task for any buyer to ensure the company they are acquiring is properly valued and a good potential investment. Here are a few of the basics to research:

Business inventory—assets, liabilities and equipment
• Intellectual property—brands, trademarks, logos, etc.
• Current and outstanding contracts—What are the company’s current commitments and legal obligations, and how do these affect the company’s performance and worth?
• Financial strength—Does the company have the ability to withstand temporary losses during the transition?
• Publicity and reputation—What articles and press releases have been written about the company over the past few years?
• Tax information
• Customer/client information
• Insurance coverage
• Any litigation threatened or in progress

When doing your due diligence, the seller may ask you to sign a Non-Disclosure Agreement (NDA) in order to allow temporary access to company trade secret or other confidential information.

What are the common mistakes buyers make during mergers & acquisitions?

Try to avoid these common pitfalls when buying a business:

• Doing incomplete or sloppy due diligence
• Improper planning of the acquisition process
Failure to be specific when negotiating terms
• Incorrect valuations of the business (i.e., paying more than the company is worth)
• Failure to demand a detailed, accurate disclosure schedule
• Failure to create a detailed integration plan, or having unreasonable expectations about the integration process

How does a lawyer protect the buyer in M&A transactions?

A good business attorney will help draft, or analyze the documentation to make sure there are no loopholes that could cause you problems down the road.  If asked, he will also help negotiate a fair acquisition/merger contract with the seller that protects your interests while minimizing your risks. Finally, the presence of an attorney throughout the transaction process helps keep sellers accountable and provides a sense of safety through the process.

A successful acquisition can result in great profit for your company—but a transaction with poor planning, bad negotiation or poorly written contracts can cost you dearly. If you need an experienced Dallas business law attorney to help guide you through the M&A process, we are here to help. Call Armstrong The Law Firm, P.C., today at 972-424-L-A-W-S (5297).

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

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5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297