While the biggest mergers and acquisitions make national news, the reality is that a whole range of business organizations of various sizes in Virginia may come to a point in which their leadership wishes to buy another business outright. Alternatively, the leadership may wish to combine forces with another business, perhaps even under a new name. At each stage of the process, a business merger presents legal issues that can be difficult to resolve yet are of utmost importance to the interests of all parties involved.
For instance, once they start discussing the possibility of merging, oftentimes businesses will sign agreements about how their negotiations will proceed. These contracts need to be carefully drafted in order to make sure trade secrets, sensitive financial information and other important and confidential information get the protection they deserve.
Moreover, once negotiations begin, the businesses will ordinarily exchange lots of important information about themselves. All sides will need to make sure that they understand both what the information they have means from a legal perspective, and what information may be overlooked, misunderstood or is just missing altogether. Typically, both sides will want to see accounting balance sheets, tax returns, agreements which the businesses have entered, and the like.
Once both sides have had a chance to examine information about the other business, they will have to negotiate and draft an agreement to merge. Even for smaller businesses, merger agreements must include lots of details and must correctly and clearly express the agreement of the parties. Each business will also have to make sure that their agreement meets the requirements of Virginia law and any federal laws that apply.
Businesses in the Blacksburg area could have a number of excellent reasons to consider a merger. However, handling the nuts and bolts of a merger can be difficult. An attorney with experience in business formation and planning may prove very helpful.