Law Firm Merger Agreement

An acquisition is a great way for a company to achieve rapid growth over a short period of time. Companies choose to grow through M&A to improve market share, achieve synergies in their various operations, and to gain control of assets.

An acquisition is where one company takes control of another by purchasing its assets or the majority of its shares. There are five main types of acquisitions: Value creating Value creating is where a company acquires another company, improves its performance and then sells it again for a profit.

An acquisition agreement is a contract that governs the purchase of one company by another or the merger of two companies. The acquisition agreement is made up of multiple documents including the purchase agreement as well as all documents that are needed to finalize the transfer of the business.

During a true merger, two companies form a new entity by combining their teams and resources. During an acquisition, one company buys the other company and brings it into its fold. The acquiring company doesn't experience much, if any, change.

Most state and local bar ethics opinions on this topic state that a lawyer can be a partner in more than one firm, but that the firms in which he is a partner become essentially one firm for the purposes of imputed disqualification and conflicts of interest.

Mergers combine two separate businesses into a single new legal entity. True mergers are uncommon because it's rare for two equal companies to mutually benefit from combining resources and staff, including their CEOs. Unlike mergers, acquisitions do not result in the formation of a new company.

In theory, a merger of equals is where two companies convert their respective stocks to those of the new, combined company. However, in practice, two companies will generally make an agreement for one company to buy the other company's common stock from the shareholders in exchange for its own common stock.

M&A lawyers assist their clients with the appropriate financing for mergers and acquisitions and provide advice concerning the drafting, negotiation, and performance of contracts for the sale of portions of the business.