Acquisitions Attorney in San Jose, California
There may come a time when you, as a business owner, may consider acquiring another company to expand your own business. If you are looking to grow your business but need assistance with the acquisition process, our attorney at The Heritage Law Group can help you achieve your goals.
Our acquisitions attorney can assist you at every step of acquiring a new business. We will handle the hard work for you, prepare the necessary legal documents, and ensure that you avoid the risks often associated with these transactions.
From our office in San Jose, we provide trusted legal assistance to clients throughout Northern and Southern California. We also proudly serve clients throughout Fort Bend County and Montgomery County, Texas, from our office located in Houston.
Types of Acquisitions
If you are planning to acquire and take over another company, you need to understand the four main types of acquisitions:
Horizontal. This type of acquisition occurs when a company acquires another company in the same industry or sector. Basically, horizontal acquisition refers to the purchase of a competitor.
Vertical. This type of acquisition refers to acquiring a company in the same industry but at a different production level (e.g., the purchase of a supplier or distributor).
Conglomerate. The acquisition is called “conglomerate” when a company acquires a company from a different industry or sector.
Congeneric. This type of acquisition occurs when a company acquires a company that is in the same or related industry or sector but offers different lines of products.
Each type of acquisition presents a unique set of challenges for both the acquiring company and the target company, which is why you may need to contact a skilled acquisitions attorney in San Jose, California, to help you navigate the legal process and avoid possible complications and legal risks.
The Steps of an Acquisition
The process of one company acquiring another can be broken down into the following steps:
1. Understanding the Motive
Before a company decides to acquire another business, it will need to establish a motive for the acquisition before they proceed with the next steps. Common motives for acquisition include diversification, cost reductions, greater market share, economies of scale, and others.
2. Doing Research
When performing research to find potential targets for acquisition, the acquiring company needs to create search criteria to understand what type of acquisition they are looking for and how much they are willing to spend on the transaction.
3. Reaching Out
Once potential targets for acquisition are identified, the acquiring company will start reaching out to these businesses to initiate the conversation.
4. Arranging a Meeting
The next step is to arrange a meeting to give the owner(s) of the acquiring company a chance to meet with the owner(s) of the target company. During the meeting, the parties can discuss the acquisition plan.
5. Making an Offer
If the acquiring company is ready to move forward with the acquisition, it will make an offer. Typically, the target company will not accept the offer right away and will initiate negotiations about the price.
6. Conducting Due Diligence
When the target company accepts the offer, the parties will move on to due diligence, which presents the last chance for the acquiring company to assess risks and opportunities.
Finally, the last step is to close the deal. The acquiring company will most likely need the assistance of a skilled attorney to put together the documents and ensure that the parties sign legally binding contracts to close the deal.
The process of acquiring a company may include additional steps. Consider hiring a skilled acquisitions attorney to help you with your transaction and protect your best interests. Your attorney will help you avoid legal risks while also making sure that you are getting a favorable deal.
Acquisitions Attorney Serving San Jose, CA
At The Heritage Law Group, our acquisitions attorney provides practical legal guidance to business owners in San Jose, California, and surrounding areas. We assist clients with every aspect of acquisition, including drafting documents, negotiation, performing due diligence, and closing. Get in touch today to discuss your unique case.