Mergers and acquisitions in Tennessee are characterized by some basic considerations that apply to such transactions in all other states and beyond. Some of these considerations can be viewed as pitfalls for a business to avoid when getting involved in the mergers and acquisitions field. These suggestions, however, do not touch the total complexity of such transactions. For knowledgeable guidance, a business must consult with a business law attorney who is experienced in the various varieties and layers of such transactions.
Mergers and acquisitions require advance planning and due diligence prior to introducing the idea externally. Different aspects of the operations of a target company must be learned and future directions determined consistently with the target company’s concerns. Intelligence gathering should be carried out in the industry to determine the impact of the merger and whether similar competitive actions might crop up between other companies. In addition, due diligence should be performed to assure that the baggage of another company will not be an unacceptable burden.
There may be a host of problems that could be involved in the acquisition and they should be identified and evaluated before going forward. It is also a part of due diligence to obtain from the other company’s attorney’s all pertinent information regarding pending claims and lawsuits along with judgments entered. Due to these efforts, it often happens that a proposed transaction falls away in the investigatory stages.
That may be a good thing resulting from the efficient exercise of due diligence. Or it may signify a stroke of good luck rather than a lost opportunity. When one acquisition does not prove viable, it may leave a hint for another direction to take. In any event, mergers and acquisitions in Tennessee and other states is an ongoing activity for growing businesses. There are likely to be potential new avenues of growth or the need for strengthening existing activities that must be explored.