South Florida Corporate Restructuring Through Mergers & Acquisitions
A Merger & Acquisition (M&A) takes the idea that “two heads are better than one,” and applies it to the business world by leveraging the combined strength and resources of two companies into a single, more powerful, effective, and expansive business entity.
It is an especially useful tactic to use when two businesses are struggling or when a company is seeking to achieve rapid growth or expansion. While the term “Merger & Acquisition” can be used to define any consolidation of two companies, “mergers” and “acquisitions” are actually two different concepts that are generally characterized by the nature of the business entity that results from the deal.
A merger (or “merger of equals”) occurs when two companies of similar size or otherwise beneficial to each other, collectively agree to join into a single entity. An entirely new business entity is formed from the two original entities, generally for the mutual benefit of each company.
An acquisition, on the other hand, refers to one company taking over clear ownership of another and the original company is either extinguished or exist with less assets and sometimes less liability. This often times occurs under less than friendly or even desperate circumstances.
Either way, M&As are an important restructuring and reorganization measure aimed at positive growth for every party involved in the deal. They are a vital, though incredibly complex, business tool that requires extensive research, negotiations, planning, and legal strategy.
The Campbell Law Group handles all aspects of Mergers & Acquisitions for both public and private companies. Give us a call to learn more.