Mergers and Acquisitions in California
Are you interested in how it is possible to complete a merger, acquisition, or buyout in California? Generally, mergers are governed by state law, however, federal authorities, like the U.S. Department of Justice and the Federal Trade Commission, are engaged in examining mergers and acquisitions in order to ensure non-violation of competition law. For this reason, every M&A agreement should be carefully written. It would allow to avoid running into legal problems after having done the deal.
In this article The Margarian Law Firm lawyers will provide you with a general introduction to the topic. If you want to get to know more specific information, we will help you to understand the various aspects of your case. We are ready to provide answers to your initial questions concerning mergers and acquisitions in California for free. Do not hesitate to contact us!
You may file your request online, by telephone or by mail. 818-553-1000
Mergers and acquisitions agreements may be one of the following type:
- Asset purchase. In this case, the buyer buys a part or all of the seller’s assets. The buyer assumes only that liabilities which he or she expressly agreed to assume. Under the term of “assets”, we include both tangible (i.e., property or plant) and intangible assets (i.e., goodwill or intellectual property).
- Stock purchase. The buyer obtains less than all of seller’s shares and forces to sale the rest of shares in order to own 100% of the acquired company).
- Merger. Upon a merger, two or more companies form one company. The company which survived has all liabilities and gets all assets of the company which has disappeared.
All mergers and acquisitions agreements consist of four (4) main components:
- Representations and Warranties,
- Conditions to Closing,
Additionally you may state a non-competition clause in a merger and acquisition agreement. It means that the buyer may restrict a person, for example, an employer or a seller, to work for a competitor firm. However, such terms must have been carefully considered because there are different laws in different states related to non-competition clauses. For example, under California law restrictions on competition are almost disallowed.
Thus, if you are involved in merger and acquisition deal and you need to minimize the potential liabilities and costs, The Margarian Law Firm lawyers are ready to provide with cost-effective and beneficial legal services.
Make an informed decision!
Call 818-553-1000 and you will get a free initial consultation from The Margarian Law Firm Lawyers.