18851 NE 29th Avenue
Suite 303
Aventura, FL 33180

Phone: 305-929-8500
Fax: 305-675-0564

1089 W. Morse Avenue
Suite D
Winter Park, FL 32789

Phone: 850-391-5060
Fax: 850-391-7705
400 N. Meridian St.
Tallahassee, FL 32303

Phone: 850-391-5060
Fax: 850-391-7705
Kurkin Forehand Brandes - COVID-19 Update

What are mergers and acquisitions in business law?

Down Arrow

You are here:

  1. Home
  2.  » 
  3. Business Law
  4.  » What are mergers and acquisitions in business law?

A business may stand alone for years as a fully separate and independent entity until the day comes that it chooses or is forced to close. However, many Florida businesses go through changes when they join with and split from other corporations and organizations. When two or more businesses combine into one entity, the process of coming together can be called a merger.

A merger is similar to an acquisition. While they both involve the joining of at least two entities, the term acquisition is more often associated with the purchase of a smaller business by a bigger business. When this happens, the smaller business is often folded into the operations of the bigger business.

Mergers and acquisitions are complex legal events. Before a company decides to merge with or acquire another business, it should make sure that the entity it is looking at is in good financial and legal standing. Taking on the debts or legal liabilities of another company can be devastating to a business.

Information about the success and health of a business can be found in its organizational and financial documents. The information contained in these and other required records can give other companies the information they need to decide if a merger or and acquisition is a good decision.

Before entering into a business merger, an individual may wish to consult with a business law attorney. A bad business deal may cripple the future of a business that an owner has worked their entire life to build. Legal guidance can give individuals the confidence they need to make informed choices about the management of their companies.