Recent high-profile mergers and acquisitions in South Florida totaling more than $18 billion show that the Florida economy is booming, despite current challenges. Purchasing or selling a company is a highly complex procedure. The complexity is compounded with high-value or publicly-traded companies.
It’s easy for one or both parties to have unrealistic expectations going into the merger and acquisition process and lose sight of some of the finer details, however losing sight of vital elements can spell disaster for your M&A ambitions.
Florida laws and regulations for mergers are some of the most complicated to navigate. Without an experienced mergers and acquisitions attorney helping guide you through the process, you could end up running into some significant headaches later on. In this article, we dive into some of the most common expectations and how they can conflict with the reality of the process.
Expectation: A successful acquisition is an end
The reality is that a successful acquisition is a means to an end. The merger and acquisition process can renew the vitalization for any business, but it comes with significant risk. The acquisition should be viewed as being of greater importance to your business’ overall strategy than almost any other type of capital investment.
Expectation: Using the same team for the acquisition is the best course of action
The reality is that a “clean team” should be formed to help provide an unbiased point of view, especially for creating a proper action plan for the share exchange. This team’s goal is to act autonomously from the other parties to examine, consolidate, and report factual information to facilitate both sides’ decision-making processes.
Your M&A team also needs to have an experienced merger and acquisition attorney who understands Florida’s laws. Even if you already have a business attorney, if they’re not an expert in M&A processes, you may miss out on valuable opportunities or essential steps.
Expectation: Capturing Value is the same as creating value
This is a common myth, but the reality is there is a distinct difference between capturing value and creating value. Capturing value in a merger or acquisition is focused more on decreasing competition or gaining more control over production costs. On the other hand, creating value brings new techniques, services, and other skills to your company. Each strategy has its benefits and drawbacks. Understanding the difference and how it affects your overall business strategy is vital to maximizing the value of the M&A process.
An Agile Merger & Acquisition Strategy is Vital
To successfully execute a merger or acquisition in Florida, companies need to have an agile strategy that is adaptable to outside influences. The team at Capital Partners Law has the knowledge and experience to advise you through every step of the process. We’re one of the very few law firms in Florida that have a deep understanding of the tech landscape and can help you develop and implement a successful M&A strategy today.
What Should You Do Next?
If you are interested in learning more or speaking with an attorney at Capital Partners Law, there are plenty of ways to get in touch:
- Call us toll-free at (833) 7-CAPLAW.
- Find your nearest office and call to schedule a free consultation.
- Complete our New Client Request Form online. (No obligation – an attorney will review your information and contact you to discuss your needs).
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This article is for informational purposes only. It does not create an attorney-client relationship with any reader nor should it be construed as legal advice. If you need legal advice, please contact our firm.