O'Toole Atwell, PC Serving Clients In Texas & Colorado For OVER 20 Years
Business & Commercial Litigation
Phone 512-475-4740
Our Practice Areas

Caution necessary when considering a merger or acquisition

Mergers and acquisitions often enable Texas companies to thrive. Sometimes the transaction benefits both entities, but a decision maker at a company needs to evaluate multiple angles when approached with an acquisition offer. The due diligence process could identify good opportunities or reveal red flags that make the deal a poor direction for a company to take.

To avoid wasting time, an acquisition target should first judge the seriousness of a proposal. Any propositions that come from parties that do not involve high-level executives will likely go nowhere. A company's leadership should also identify the motivations behind any offer. The other company might simply want to eliminate a competitor or gain control of a product but ultimately fire the people working at the acquired company. An acquisition might only be a tactic for beefing up a company's value prior to an IPO.

If discussions proceed between two entities, a company should identify its deal breakers early in the process. The upfront disclosure of issues that would undermine a deal could spare both sides effort and expense on a deal that falls through. Confirmation of financing represents another crucial element that should be established in the early stages.

Throughout the consideration or execution of a merger or acquisition, a decision maker typically seeks legal advice. A business attorney could provide numerous services that support due diligence investigations and the development of contracts and buyout terms. A legal analysis of a company's value and liabilities could provide management with important insights about the acquisition. An attorney might suggest exit strategies that compensate the business founders adequately and protect them from unexpected problems.

No Comments

Leave a comment
Comment Information
5 Star Review

Passionate, professional, and caring! Brian did a great job representing me!
Jana ODonnell

  • Super Lawyers Brian J. O'Toole | SuperLawyers.com
  • Board Certified Texas Board of Legal Specialization | Brian J. O'Toole - Civil Trial Law
  • Austin Bar Association
  • Texas Bar Foundation
  • Supreme Court of the State of Texas
  • United States District Court | District of Colorado
Email O’Toole Atwell, PC

Make Your Appointment Today

Our main office is located in Austin, Texas, and we serve clients throughout Texas and Colorado. Contact us today at 512-475-4740 or online to find out how we can put personalized service to work for you in your legal matter.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

O'Toole Atwell, PC
919 Congress Avenue, Suite 535
Austin, TX 78701

Phone: 512-476-4740
Fax: 512-476-1228
Austin Law Office Map