Mergers and Acquisitions: A Business License Field Guide
It is a known fact that large corporate merger transactions involve many complex areas of law and regulations. Needless to say, they also give rise to many logistical issues related to ongoing operations. Various professionals in an acquiring company need to coordinate their efforts to create a smooth transition during a merger and those efforts often involve complex interactions with government authorities at the federal, state, and municipal levels in areas that range from anti-trust laws to tax considerations to licensing and regulatory compliance. An acquiring company should always consult with legal, tax, and regulatory experts so they can maintain focus on their own area of expertise — i.e. operations.
And what about the target company? It is always in their best interest to assist in due diligence by demonstrating that their compliance is in order. Their acquirer must be confident that they are operating in good standing. It is hard to overstate the ramifications of noncompliance in this high-pressure (and publicly exposed) context. They need to do the preliminary work to guarantee that their licenses can be transferred/relicensed expeditiously once the merger nears its final destination. Only a dedication to best-practices can prevent lapses in coverage and allow operations to continue seamlessly.
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