What To Consider About Mergers

Mergers are business combination transactions involving the combination of two or more companies into a single entity. Most state laws require that mergers be approved by at least a majority of a company's shareholders if the merger will have a significant impact on either the acquiring or target company.

If a company involved in a merger is subject to Securities and Exchange Commission (SEC) disclosure rules, shareholders must receive information about the merger in the form of either a proxy statement on Schedule 14A or an information statement on Schedule 14C. The proxy or information statement will describe the terms of the merger, including what shareholders will receive if the merger proceeds.

Mergers and acquisitions offer an opportunity to expand your business operations and increase your profitability by purchasing or combining with another company.

Like any other corporate action, however, numerous regulations dictate the process. You must fully understand and prepare for a merger through preparation and negotiation of merger agreements and ancillary documents that govern the surviving entity, including, but not limited to, securities offering documents and filings with other regulatory entities such as the SEC, the Financial Industry Regulatory Authority (FINRA) and the OTC Markets Group. Our attorneys at the Law Office of Clifford J. Hunt, P.A., have substantial experience handling mergers and acquisitions and can assist companies with the preparation of all documents necessary to facilitate completion of a successful merger or acquisition.

The Role Of An Attorney During Mergers

Our services include:

  • Drafting merger agreements
  • Drafting private placement memorandums
  • Preparing disclosure documents
  • Registering shares offered in the merger
  • Compliance with anti-fraud laws
  • Preparation of documents for filing with various regulatory entities, including the SEC, FINRA and the OTC Markets Group

In mergers that involve the purchase of one company by another, the securities of the surviving entity must comply with registration and anti-fraud laws. We have extensive experience with securities law so we can advise you from both a securities and a business law angle.

Set Your Business Up For Success

Our lawyers have spent decades serving businesses with operational and securities-based needs. Our guidance is founded in a history of success helping businesses prosper.

You can email us or call 800-878-5829 to schedule a consultation. We are located in the Tampa Bay area of Florida (Seminole) and serve clients throughout Florida, nationwide and abroad.