5 Business Mergers Problems That A Corporate Law Firm Can Help Resolve

Business mergers and acquisitions (M&As) are big deals that involve the combination of two businesses into a single entity. While they can be incredibly beneficial in terms of financial gains, they also bring with them a wealth of legal considerations that need to be addressed properly. In order for M&As to go as smoothly as possible, it is important to have access to the right resources and expertise. This is where corporate law firms come into play. Their specialized knowledge and skills can help ensure that any potential business merger issues or problems are identified and appropriately resolved before they put a deal at risk.

1. Regulatory Compliance

When two businesses merge, it is essential to ensure that the result meets all relevant laws and regulations in place. Corporate law firms can help to identify any potential compliance problems and assist with ensuring that all necessary steps are taken to bring the merged entity up to code. From filing for required permits and licenses to reviewing contracts for compliance purposes, corporate law firms provide comprehensive assistance in this area.

2. Intellectual Property Conflicts

If two merging businesses have had significant intellectual property (IP) issues in the past, then these need to be addressed before an M&A is finalized. Corporate law firms can work with companies on both sides of a deal to review existing IP agreements and help resolve any potential conflicts before they become impediments.

3. Tax Planning

When merging two businesses, it is important to consider the eventual tax burden on the new entity. Corporate law firms can provide tax planning services that look at both short-term and long-term implications of a merger in order to identify any areas where taxes might be reduced or minimized. They can also assist with filing the paperwork necessary for obtaining favorable tax treatment.

4. Contract Negotiations and Drafting

Merging two businesses means that there will be a lot of contracts involved — from labor contracts to supplier agreements and more. Corporate law firms have the expertise needed to ensure all contract negotiations are conducted in a fair and balanced manner, as well as to provide guidance on drafting up new contracts that meet all applicable laws and regulations.

5. Employee Issues

Finally, when two businesses merge, there can be complex employee issues that arise. Corporate law firms can assist with the resolution of any disputes or questions related to wages, benefits, working conditions, and union rights. They can also help employers draft policies and procedures for handling any potential future conflicts in a legally sound manner.

Business mergers are complicated affairs — but with the right resources and expertise available, they don't have to be overly difficult. By working with a qualified corporate law firm, companies can rest assured that their merger or acquisition will be handled as efficiently and effectively as possible — allowing them to focus on what really matters: making their deal a success. 

For more info about corporate law, contact a local company. 

Share