Mergers and acquisitions are typically viewed as a sign that a company is on the rise and in a position to take a much more prominent role in its respective market. Thus, many business executives and representatives may push for such an action without thinking about the potential challenges and pitfalls that it may bring. This is not to say that a merger or acquisition project should be discouraged; rather, it simply means that it should be approached with all parties involved having their eyes wide open, with due diligence paid towards ensuring that every potential legal issue that may arise is researched and addressed.
Such certainly appears to be what has happened with the proposed merger of domestic cell phone carriers Sprint and T-Mobile. The merger of both companies has been approved by both the U.S. Justice Department and the Federal Communications Commission, as it is viewed as a vital step to rolling out 5G technology to most of America (particularly to rural customers). Yet even with the blessing of both of these federal agencies, potential problems with the merger could be on the horizon, as attorney generals from 13 states (along with the District of Columbia) appear to be mobilizing to fight the proposed $26 billion venture. Their collective claim is that it will allow the carriers to demand higher prices from consumers.
This case serves as an example of just how complex mergers and acquisitions can be. Even with the most careful planning and preparation, challenges may still arise. A business may be much better prepared to meet such challenges if it has the assistance of an experienced attorney on its side.