Mergers and Acquisition Lawyer Connecticut
If you are going through a merger and acquisition, you may want to consult an M&A lawyer Connecticut businesses trust. A lawyer from Eric Lindh Foster Law, LLC can provide valuable advice about financing, drafting and negotiation. Here are the most common mistakes to avoid during a merger and acquisition.
Not Doing Your Research
While it can be exciting to merge with another business, it is critical to know what you are getting into first. Even if a business appears successful on the outside, it may still have certain issues. That is why you should do your research before a merger. For example, you will want to find out about a company’s financial information, physical assets, intellectual property, contingent liabilities, insurance coverage and environmental issues.
While it is always ideal to buy a company that will grow fast, you should not have unrealistic expectations. If you overestimate growth, you may just end up disappointed. It is a good idea to ask the sellers about the best ways to grow the company. They established the business, so they would know how to effectively expand it.
Neglecting to Consider Balance Sheets
Before you decide to buy a business, you should take a careful look at its balance sheets. These sheets essentially show the financial health of a company. They will inform you of how much capital you need to operate the business daily.
Not Having a Lawyer Review Your Sale Agreement
It is essential to have a Connecticut M&A lawyer assess your sale agreement before you purchase a business. A lawyer will make sure the agreement includes everything it should and that it reflects your best interest. For instance, every sale agreement should identify the sales price, inspection period, protection for confidential information like trade secrets and remedies in the event either party defaults.
Failing to Establish a Non-Compete Agreement
One of the last things you want is for the person you purchased a business to start a competing business close by. If you don’t have a non-compete agreement, that could happen. This agreement prohibits the seller from establishing a competing business for a certain period of time.
Not Focusing on Integration
When combining two companies, too many owners just focus on daily operations and increasing sales. While that is all certainly important, owners should also concentrate on integration. Some owners wait too long to assign roles to the employees, which may cause some of them to leave the company. It is wise to have someone in the company focus on the employees from the very beginning.
If you need assistance with a merger and acquisition, schedule a meeting with a Connecticut M&A lawyer from Eric Lindh Foster Law, LLC today.