1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Dallas Business Lawyer Answers FAQs about M&A for Sellers

Dallas business law attorney, Richard “Ric” Armstrong, addresses some of the confusing questions business often have when selling their company.

The selling parties in merger & acquisition (M&A) transactions have a lot riding on their decisions and actions. They need to make sure they get a fair valuation and price for their company and strive to make the business as attractive to the buyer as possible without giving away too much. Let’s explore answers to a few common questions sellers have when working their way through M&A transactions.

What are some common mistakes sellers make during M&A transactions?

When courting or negotiating with prospective buyers, sellers need to watch out for the following pitfalls:

Keeping incomplete books and records. Buyers frequently get frustrated during the due diligence process when presented with sloppy or incomplete documentation. At worst, it can jeopardize the transaction.
• Lack of patience during the discovery and due diligence process. Buyers need time and space to determine whether your company is a sound investment for them. Don’t antagonize them or scare them away by pushing for a quick decision.
• Failure to protect company interests with a sound NDA. You don’t want buyers revealing or stealing company secrets—especially if they decide not to go through with the acquisition.
• Lack of transparency. Be honest about company weaknesses and liabilities. Buyers who do their research will find out eventually anyway. Let them find out from you first, with proper explanation by you to frame any issues.
Overinflating company valuation. Posturing a company at far more than it’s worth makes buyers suspicious.

How can a good business lawyer help me as a seller in an M&A transaction?

You never want to go through a merger or acquisition process without a skilled business lawyer to protect your interests. An attorney helps identify any loopholes or blind spots in your contracts that could cause you to accept less than your company is worth. If you are retaining an ownership stake in the company, an attorney’s advice can also save you from giving up more than you should. Your lawyer can also be highly helpful in the negotiation process to assist you to get a fair value for your company while guarding you against unseen potential legal pitfalls.

Selling a business of any type or size can be a complex process that can profit you greatly if the transaction is done right, or cost you dearly if it’s done poorly. Far too much is at stake for you do try to sell all or part of your company without a skilled Dallas business law attorney to help guide you. For expert legal advice in M&A transactions, 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

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297