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January 2016 Archives

Will the Marriott/Starwood merger meet expectations?

For many businesses, deciding to merge with another company is not necessarily about the immediate financial gains. Indeed, an acquisition has to make financial sense and must ultimately benefit shareholders, but oftentimes a change to a company’s brand can be just as important.

American Apparel rejects takeover bid by former CEO

According to the old adage, you can go home again...unless you are former American Apparel CEO Dov Charney. The ousted CEO recently teamed up with a group of new investors to mount an attempt to take back the company he started nearly 20 years ago. He recently filed a motion objecting to American Apparel's current reorganization plan and proposing his own, which would provide more than $300 million in financing and ostensibly leave the company in better financial condition after it emerges from bankruptcy.

Why middle market transactions will continue in 2016

Last week’s gains marked a positive start to an otherwise lackluster month of trading so far this year. However, the struggles of energy stocks and the recent rise of interest rates are not likely to put a damper on the pace of mergers and acquisitions in 2016.

Merger between Staples and Office Depot in trouble

In a number of our posts, we have suggested that the torrid pace of mergers and acquisitions could be slowed by rising interest rates in 2016. However, we must also take into consideration the role of the federal government in approving or quashing mergers that threaten to stifle competition. It remains to be seen how the Federal Trade Commission will deal with the mega merger between Pfizer and Allergan. But in the meantime, it appears to that the large merger between Office Depot and Staples is in trouble. 

Hacking lawsuit between rival ride sharing companies intensifies

In 2015, stories about corporate data breaches where customers’ personal information were lost or stolen dominated headlines. As we turn to 2016, it appears that data hacks may continue despite business’ best efforts.

Former American Apparel CEO makes bid for company in bankruptcy

In a prior post, we noted how Los Angeles based apparel maker American Apparel sought Chapter 11 bankruptcy protection after years of losses and allegations of misconduct from their former CEO Dov Charney. American Apparel filed its petition in October 2015. Fast forward to January, and the ousted CEO is poised to regain his company.

Should you have an initial meeting before mediation?

If your business is embroiled in a legal dispute, you have likely been counseled on the process of mediation. With this being a form of alternative dispute resolution, the mediator (at the beginning of the session) will likely have a joint conference before breaking into individual caucuses where the mediator goes back and forth between rooms.

Goals that a successful merger should meet

As we have noted in prior posts, the trend of a strong market for mergers and acquisitions is expected to continue in 2016. The latest increase in interest rates will likely have an adverse effect on transactions in the short term. With that, companies that look to strengthen their market positions through acquisitions must still scrutinize deals so that they make sense both in the short term and the long term.

The anatomy of a merger agreement

The process of acquiring another company and merging technologies is not an easy process. But when it is done efficiently and skillfully, it can benefit both companies as well as their employees and shareholders. A number of our posts have focused on the due diligence that M&A attorneys perform in order to advise their clients on whether an acquisition will be in the company's best interests, but this post will focus on how an acquisition agreement is crafted.

Document production in the acquisition of a business

The acquisition of a business can be an exciting time; especially for the business that is being purchased. For many people who have started small businesses have dreamed of this day, and the paychecks that come with it. But before the purchase can be consummated, it is prudent to ensure that the transaction proceeds as expected, there is an expectation of due diligence. With that said, a potential acquirer of your business will want to few a number of documents surrounding your business.

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