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Knowing when to buy and when to sell a business

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For many Florida businesses, one key to growth is through smart, well-managed acquisitions. But sometimes it can be even more important to know when to sell parts of the business.

ADT, the Boca Raton-based security technology company, recently announced that it was selling its Canadian operations for an impressive $700 million in cash. The buyer is Telus Corp., based in Vancouver, British Columbia. Last year, ADT Canada had revenue of $229 million. The deal has yet to be approved by Canadian regulators.

ADT shares rose almost 2% after announcement of the sale, and the company’s board of directors announced a dividend of up to $550 million for its shareholders. ADT chief executive Jim Davis said the Canadian business is more capital-intensive than the U.S. business, and that the sale would give the company more freedom to invest in the U.S. market while increasing value for shareholders.

The sale marked a changed strategy for ADT. In recent years, the company has been rapidly acquiring smaller companies as it expands its security offerings in the United States. Its blue and white logo appears outside homes and businesses all over the country.

Acquisitions and mergers must be managed in full compliance with laws and regulations. Experienced business attorneys can help owners and executives from large and small businesses with a wide variety of issues in mergers and acquisitions, including negotiating contracts, arranging valuation and more. An experienced business attorney can also advise business leaders on legal and business strategy issues, and help resolve disputes, should they arise. Better yet, an experienced attorney can help business leaders draft contracts that will help prevent the possibility of litigation in the future.