Mergers and acquisitions (M&A) involve transactions in which the ownership of companies, their operating units, or other business organizations are combined and/or transferred. Through strategic planning, M&A may allow a company to expand, shrink, or change its competitive position and nature of its business.
A merger occurs when two entities consolidate into one entity. In contrast, an acquisition occurs when one entity takes ownership of another entity by acquiring its assets, stock, and/or equity interests. Through either a merger or acquisition, one entity consolidates the assets and liabilities of another entity. From a commercial and economic point of view, both types of transactions generally result in the consolidation of assets and liabilities.
If done correctly, merging with or acquiring another company is a strategic move that can pay huge dividends for companies and their investors. Mergers and acquisitions are complex transactions that require both companies’ managers and shareholders cooperation. The way the deal is structured can mean the difference between success and failure. We have years of experience walking clients through the various options and concerns involved with such transactions. We help clients all around the world structure mergers and acquisitions that lead to growth and enhanced profitability.
Contact a Securities Attorney
For more information regarding mergers and acquisitions, contact a securities attorney at PEARSON BUTLER Law who can help with M&A, securities arbitration, securities transactions, or recovery of investment losses by calling 801.495.4104.