Tag: mergers

Business, Contracts, Corporate Law, Entrepreneurs, Mergers & Acquisitions, Venture Capital

Ping® by Adlerlaw – Structuring and Planning M&A Transactions

Ping® by Adlerlaw – Structuring and Planning M&A Transactions

I was honored to participate in a recent webinar about Merger & Acquisition Transactions as part of the Financial Poise  M&A BOOT CAMP 2023. Our program, the kick-off episode in the series,  “Structuring and Planning the M&A Transaction,” covered a broad range of topics related to preparing for, structuring, and executing M&A transactions.

Whether you are a buyer or a seller, you may have questions, such as “What are the primary types of M&A transactions?” The panel discussed some of the key similarities and how they are structurally different. For example, I discussed the reasons why a buyer might want to structure a deal as an Asset Deal. Other panelists discussed the reason for choosing a merger (combining two companies); stock sales and purchases such as buying a company through a purchase of stock of the selling company from its shareholders. The panel also discussed financing options like  ESOPS and use of debt.

You can learn more here.

Business, Contracts, Corporate Law, Corporations, Mergers & Acquisitions, Small Business, Uncategorized, Venture Capital

Why Now is the Time to Buy or Sell a Business

Looking for Business Opportunities Ahead of the Economic Fallout

In this difficult time of staying at home, people may be looking to buy or sell a business. We have all been impacted in different ways, each of which may be a reason to make a change. Traditional reasons people exit a company arise because of changing economic conditions, a tragic family event, a loss of passion, or simply the desire to retire. At the same time, buyers may be seeking to expand in a sector or industry, add talent, enlarge the customer base, or acquire technologies or resources that can provide a competitive advantage. Witness the unprecedented overnight shift to tele-work, tele-health, remote online primary school education, and live-streamed happy hours and family gatherings.

Thinking of Buying or Selling a Business?

If you are thinking of buying or selling a business, here are three key reasons to act now. First, labor is in flux, and available. As retailers, restaurants, travel companies and other service sectors that employ tens of millions of Americans get squeezed, the tech sector, which tends to have relatively few employees, has surged. Many target businesses may have a lower headcount while retaining a leaner operating infrastructure and access to a ready, willing, and trained talent pool.

Second, the federal government will do what it takes to stabilize the economy and accelerate the recovery. Nevertheless, there is a real risk of many “main-street” companies going bankrupt – making them easy acquisition targets. Opposite that, large-scale public companies (consumer-packaged goods, media) are boosting the broader recovery. Companies on either side of this equation may benefit from the changing market dynamics and opportunities for what comes next. As of this writing, nine states have lifted the stay-at-home orders or will let them expire, with many others soon to follow. The window is closing.

Third, one of few benefits of the current crisis is the acceleration of investment and escalation of consumer-facing products, services, and technologies. Reports indicate that 2020 shows a year-over-year (YoY) increase of over 15% in use of contactless payments.  This is a real opportunity for companies to not only “get lean” but also digitize business practices that can improve the customer experience.

Changing consumer behavior will continue to force this along. According to Forbes, U.S. YoY online retail revenue growth is up 68% in April, surpassing the earlier peak of 49% in early January. U.S. & Canadian e-commerce orders grew 129% with 146% growth in all online retail orders. Online conversion rates increased 8.8% in February, an increase of shopping intensity usually seen only during rare events such as Cyber Monday.

Bottom Line

Most people are sitting around waiting for things to shift and change around them, while others are moving through it all and pivoting on their own. Don’t wait for your competitors to invest in the next generation technologies. Working with experienced legal counsel will help you identify the opportunities and act quickly to negotiate and close a deal. If you are interested in learning more about buying or selling a business, please get in touch.

Entrepreneurs, Infringement, Litigation, Trademarks

Trademarks, Goodwill and M&A

A trademark includes any word, name, symbol, or device, or any combination, used, or intended to be used, in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others, and to indicate the source of the goods. In short, a trademark is a brand name.

In Basile Baumann Prost Cole & Assocs., Inc. v. BBP & Assocs. LLC, the court examined the elasticity of the goodwill concept, which can extend to include brand, firm, and even that associated with individual members.

“Goodwill is “the total of all the imponderable qualities that attract customers to [a] business.” “There may be business or professional goodwill, or both combined in one enterprise.” Professional, or personal goodwill, “is good will that is based on the personal attributes of the individual such as personal skill, training, or reputation.” In Maryland, the concept of personal goodwill most often arises in cases involving the distribution of property in divorce, or covenants not to compete.”

“If … consumer satisfaction and preference is labeled ‘good will,’ then a trademark is the symbol by which the world can identify that good will.” “A sale of a business and of its good will carries with it the sale of the trademark used in connection with the business, although not expressly mentioned in the instrument of sale.”

Since goodwill is elastic – and divisible – attorneys in mergers, acquisitions and divestitures would do well to consult with a trademark lawyer to identify issues related to trademark (goodwill) ownership and transfer.