Business growth can mean many things. For some, it takes the form of mergers and acquisitions. These opportunities can allow businesses to increase their footprint in an area and grow their business capacity. For others, a joint venture may provide the right opportunity for growth. This option can allow to separate businesses to join together in ownership of a third entity. If structured wisely, such partnership can be mutually beneficial.

In any consolidation situation, it is important to complete due diligence. This includes a review of the assets and debts of the business you intend to purchase as well as information about the goals of the sellers. Owners who are navigating these conversations are wise to take various economic considerations, including tax implications, into account before finalizing the deal. Sellers will generally aim to mitigate their tax responsibilities while buyers can find themselves facing unexpected tax obligations. This can be reduced by reviewing the implications of a stock versus asset acquisition.

Although a very important part of the conversation, these transactions are about more than simple economic calculations. A truly successful transaction also requires a smooth transition to help better ensure the retention of key players within the organization.

A business law attorney experienced in mergers, acquisitions and other consolidation options can help complete due diligence to answer the economic and even some of the cultural questions that are important to discuss during a proposal, review a proposed deal and help negotiate and finalize the transaction on your behalf. This will mitigate the risk of any future surprises.