Mergers and Acquisitions Deal Structures Solicitors London, Essex, Hertfordshire & Kent
Mergers and Acquisitions can be completed using various deal structures but choosing the right one could be the difference between a successful or failed deal. Both parties benefit from the correct deal structure being selected to ensure it is beneficial for each of them.
Contact our team today to ensure you have someone on your side from the beginning of the process.
Different deal structures
The three deal structures used in mergers and acquisitions are:
● Stock purchase
● Asset or sale purchase
● Merger
Stock purchase
Through a stock purchase, the target company can remain how it is but with new ownership. The buyer will purchase the stock from the target company’s stockholders, with negotiations happening along with due diligence into the business affairs.
Asset sale or purchase
For a buyer, this is frequently the preferred structure as it allows choice and control over what assets are being purchased, allowing for a selection of what liabilities are also being acquired.
If you are looking to buy or sell just a division of a company, this is likely to be the structure your legal team will suggest. However, it can hold Tax implications for the seller, and it may be time-consuming to identify individual assets involved in the transaction.
Merger
Requiring only a majority of stockholders, not all, to agree to, a merger can often be the best choice for a larger company compromised of many stockholders. Two companies will become one through a merger through an agreement; this is typically more amicable than an acquisition.
If you are looking to buy or sell a business, contact our dedicated team today. We can work with you to find the best route for you to take.
Why choose us?
All the team at Blacks Legal are experts in their field, with years of knowledge and experience. Working as a full-service law firm, our teams are interconnected, ensuring there is no knock-on effect on any part of your company during the process.
Contact Blacks Legal today on 020 3500 7471. Alternatively, complete our online enquiry form, and a member of our team will get back to you.
Contact our Merger and Acquisition Deal Structure Solicitors in London today
For smooth, efficient and practical legal advice, contact us today on 020 3500 7471, or complete our online enquiry form and a team member will be in touch.