Legal advice in business acquisitions
A business acquisition involves quite a bit. Besides the negotiation process, diplomacy and paperwork, you also have to deal with your personal motives and the interests of the staff. It does not matter whether you are selling or taking over a business. Someone with an objective view can help you with that.
You may not immediately think of a lawyer when you think of business acquisition advice. Nevertheless, it may make sense to engage a corporate acquisition lawyer at an early stage of the acquisition. Loor Legal & Partners employs lawyers who know the ropes. We are happy to help you move forward.
Planning to buy or sell a business? I will be happy to give you initial legal advice at no cost. Please call without obligation: 055 303 1950.
Mr. Ernest Loor, Attorney at Law
Why hire an acquisition lawyer?
Every business acquisition sooner or later involves a lawyer. In many cases, this is only at the moment when negotiations have already been completed, as a contract must then be drawn up. Unfortunately, more than once this is too late, sometimes irreversible mistakes have already been made in the preparation.
So the legal process begins much earlier. Even before the negotiations. These documents are always needed, in chronological order:
1. Confidentiality Statement
Before you enter the negotiation and get all the information about the company, you sign a confidentiality agreement. Only then will you get all the information about the company. Such a confidentiality agreement must also be well put together.
2. Letter of intent
Many people think that a letter of intent, or letter of intent, is non-binding, but it certainly is not. In many cases, it is legally binding. Therefore, always have the document prepared or checked by an attorney.
3. Purchase Contract
No matter how legally savvy you are, drafting a purchase contract always involves a lawyer. The business acquisition lawyer can neatly put all agreements on paper so that it is legally correct. This way, you will not have any surprises afterwards.
Legal documents are there for a reason. They establish certain rights and obligations for buyer and seller. Of course, such documents must serve both interests. No one wants to face surprises afterwards.
Therefore, make sure you have good and clear agreements that are properly put on paper. A takeover lawyer can help with this early in the process. He can help draw up such documents.
In addition, an acquisition lawyer also provides comprehensive legal advice during a business acquisition.
This goes far beyond the documents. For example, he can also help in the negotiation process. The lawyers at Loor Legal & Partners have years of experience in acquisitions and have seen it all.
Pitfalls in acquiring a business
Often we are not called until far too late, when problems have already arisen in the acquisition process. Consequently, we see that things often go wrong in the preparation. These are the most common mistakes.
1. Doing too little research
Proper due diligence, or bookkeeping, is crucial in a business acquisition. But also ask what the relationship with the staff is like. As the buyer, you have a responsibility to find out how the company is doing. Do that as well as you can, because once the contract is signed, you can't go back.
2. Signing letters of intent too soon
You have decided that you want to enter into negotiations to acquire the business, but are not yet sure if you will actually proceed with a purchase or sale. Signing a letter of intent can't hurt, right? In many cases, it does. A letter of intent is usually legally binding. Don't want to make any commitments yet? Then we at Loor Legal & Partners can draft a customized letter of intent.
3. Being too tough in negotiation
You have an amount in your mind for your business and don't want to get rid of it. Whether you are buying or selling a business, in either case it does the negotiation process no favors. In a business acquisition, the favor factor plays a major role. Letting your emotions get the best of you could be the end of the negotiation process.
4. Dealbreakers overlooked
The deal seems done, but then suddenly a rabbit comes out of the top hat and you can start all over again. Dealbreakers exist in every acquisition, but identifying them too late can turn a process into a drag. And that's no fun for anyone. An acquisition lawyer identifies the sticking points early.
Legal advice in a business acquisition.
Call directly: 055 303 1950 or make an appointment.
What a business acquisition lawyer can do for you
A lawyer who helps with a business acquisition will, of course, take the entire legal process off your hands. But he can do much more for you. You can outsource the following tasks to a business acquisition lawyer.
Drafting a confidentiality agreement
It was discussed earlier: a non-disclosure agreement is the first legal document you will encounter in a business acquisition. An acquisition lawyer can help draft such a document. Need a statement quickly? Then you can download a standard statement from our website.
Prepare letter of intent
In it all the agreements made are laid down in broad outline. The details can then be discussed. In a letter of intent, for example, you will find information about the shares to be sold and under what conditions. But it can also include a timetable and certain guarantees. A takeover lawyer can draft such a letter of intent for you so that it serves your interests.
Book Review
Every buyer has the task of doing his due diligence, the book examination. A lawyer knows exactly which parts are most important, and thus can quickly localize the main risks. Due diligence is also important for the seller: any mistakes could cost the acquisition its head. With a vendor due diligence, you can avoid such mistakes. A lawyer can help you with this.
Purchase agreements
Whatever your purchase or sale, as acquisition lawyers we know exactly how to cover all the risks. Is it about shares of a limited liability company, for example? Or are you opting for a so-called "asset deal," where certain parts are sold or bought and other parts are not? Our acquisition lawyers will ensure that the agreement is legally conclusive.
Management buy-in/out
Are you planning to buy yourself in or out of a company? Then we will help you to do this the right way. For example, consider the relationship you have with the company. Especially if you are doing a buy-in, that relationship is crucial to the success of the negotiation. A lawyer, as an outsider, can pick that up better for you.
Arranging funding
Do you need money for business acquisition? For that too, it is a good idea to seek legal advice. Whether you apply for financing at the bank or some other way. An acquisition lawyer knows where the legal snags are and will help you find the best financing.
Do you need advice on anything else? We support during all stages of the acquisition process, after all, we've been through it all many times before. Feel free to ask us.
Want to know more? We are at your service.
We are happy to think with you. Request a free intake interview for initial advice.
About Loor Legal & Partners
Ernest Loor has been a corporate acquisitions lawyer for many years. After studying corporate law, he started specializing in mergers and acquisitions, for which he completed a post-graduate course at Radboud University in Nijmegen. He now has eighteen years of experience as a lawyer and therefore knows the ropes.
Loor Legal & Partners is an initiative of Loor, who together with lawyers Sander van Harmelen and Luc Houten assist companies and entrepreneurs in all kinds of business acquisitions. They have extensive experience in SMEs, but have also helped larger and smaller companies.
Loor not only supervises acquisitions, he is also a guest lecturer in corporate law for accountants and tax specialists. As a result, he not only has knowledge of the legal part, but also precisely the financial aspect of a business acquisition. That he is good at this is demonstrated by his nomination for best takeover lawyer of the year 2019 and 2023 at the Merger & Acquisition Awards.
Help with a business acquisition
Call directly: 055 303 1950 or make an appointment.
Why hire a lawyer from Loor Legal & Partners?
You can always use help with a takeover. Moreover, it can ultimately save you a lot of money, because a takeover lawyer will prevent you from making the biggest mistakes. Loor Legal & Partners does that for you and uses a specific working method.
Discreet & approachable
Accessibility is very important to us, but also discretion. Especially in the first phase of negotiations. We handle your confidentiality with care.
Accessible information
Legal advice can quickly become complicated. Our lawyers tell it in plain language, so you always know the state of your case. And you may call us at any time for additional questions.
Specialized lawyers
Our lawyers have extensive experience in corporate acquisitions. As a result, they know when and what to expect. So with us, you will receive expert advice.
Strong negotiators
We know the ropes and get the best deal out of it. That's how the lawyer pays for himself.
Schedule a free consultation
Are you thinking about seeking legal advice for an acquisition? We understand that it can be a big step. Call us first for a free, no-obligation consultation with one of our expert lawyers. We will then briefly run through the main points of interest, focusing on your situation. After that, you can always decide what else we can do for you.