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Choosing The Perfect Counsel


Merge Or Die! When Business Choices Are Extreme And Legal Help Is Needed

Some companies do amazingly well for years. Then, all of a sudden, they cannot keep things going anymore. Yes, you can file for bankruptcy, but if you cannot foresee your company pulling out of a slump after the bankruptcy, then bankruptcy may not be your best choice. Looking for another, better off company with which to merge may help, but you will still need a business lawyer's help. Here is what this "bankrupt, merge, or die!" legal help looks like, and how certain options may lead to, or affect the outcome, of other options.

Bankruptcy 

Business lawyers can help you assess your company's current situation. They can advise you as to what kinds of bankruptcy your company can file. Chapter 7 absolves most company debt; that is not advisable if you want your company to continue on after the bankruptcy has cleared, or you want to sell or merge your company with another. Chapter 13 helps you repay your company's creditors, which makes potential buyers and potential mergers look more favorably upon you.

There is also Chapter 11, which is ideal for any company that wants to stay in business for themselves. Chapter 11 restructures the company and the company's debt to make things more manageable going forward. If you and your lawyer think that your company can survive and thrive again, ask him/her to file Chapter 11.

Mergers

In this case, a merger could also keep your company alive. Your company is the "acquired" property under mergers and acquisitions law. It will lose its name, its identity, and probably most of its employees unless part of the merger document written by your lawyer prevents some of these changes. You lose ownership of your company unless you are merging with a publicly-traded company. In that case, your lawyer can bargain for stock ownership in your former company as part of your agreement or severance from the company.

If you are going to opt for a merger, you must do it quickly before the company bottoms out. You should also avoid filing for any sort of bankruptcy, as merging with a bankrupt company causes credit-worthy damage to the other company. Other companies that are thriving will find it far too risky to merge with a bankrupt company. If you can, keep bankruptcy off the table until you absolutely cannot find another company that is willing to merge with yours.

About Me

Choosing The Perfect Counsel

If you have ever been accused of a crime, then you know the absolute sinking feeling in your gut. It can be incredibly devastating to cope with the thought of living the rest of your life behind bars, which is why choosing the perfect counsel is crucial. I started thinking about who to work with a few years ago when I was accused of something that I knew I didn't do, and it was scary. However, I knew that by focusing on my innocence and finding the right professional, things would be manageable. Check out this blog for great information on choosing counsel.

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