Merger mania in the legal space is not a new phenomenon. Many law firm leaders see a merger as a viable way to boost revenue, pick up new clients, and expand a regional or international footprint. As of last November, Altman Weil reported a record of 79 mergers in 2015, the largest number since they started keeping track. It seems like 2016 is off to an equally robust start.Law firm mergers are undoubtedly complex, high-profile and often international in scope. In addition to all the complex financial and business elements, as well as the cultural mix of the firms, law firm leaders – and marketers in particular – must carefully plan out how to notify various audiences of the intended tie-up. From support staff to the management committee to vendors, consultants and clients, each of these groups needs special attention. Of course, firms will want to share their good news with the world. The best way to reach this massive audience with a big splash is via the legal, … [Read more...] about The Urge to Merge: A Marketer’s Checklist
Merge 3 way
Mergers can be difficult, risky and expensive. So why do so many law firms contemplate them? Most would say they’re hoping to achieve a competitive advantage or find a quick fix to a perceived need. Mergers often help firms realize their strategic objectives. However, if not done for the right reasons, they can be a source of frustration and lead to a firm’s demise. THE RIGHT REASONSA good place to look for the right reasons is your firm’s strategic plan. For instance, a merger may make sense if your firm wishes to:Add experience and depth to an established practice area. Offering clients expanded capabilities is a great way to keep their business and increase your billings. For example, suppose by way of a merger you’re able to increase the size of your intellectual property practice and expand your firm’s patent infringement services. This could be important to existing and prospective clients when retaining a firm. Increase specialization. A … [Read more...] about Law Firm Mergers: To Merge or Not to Merge? That is the Question!
The past 18 months have been a busy time for the staffers investigating hospital mergers at the Federal Trade Commission (FTC). In December 2011, the U.S. Court of Appeals for the 11th Circuit affirmed a district court's denial of an FTC preliminary injunction motion, from which the FTC and Solicitor General in March 2012 filed a petition seeking review by the U.S. Supreme Court (the "Phoebe Transaction"). Also in March, the FTC ruled that the 2010 acquisition of control over a rival health system in the Toledo, Ohio, area would have anticompetitive effects and ordered divestiture; the parties reportedly plan to appeal (the "ProMedica Transaction"). In April 2012, the U.S. District Court for the Northern District of Illinois granted the FTC's request for a preliminary injunction against two hospital systems in Rockford, Illinois, prompting the parties to abandon their proposed transaction (the "OSF/Rockford Transaction").At issue in each of these challenges was … [Read more...] about Hospital Consolidations: Facing Competing Pressures to Merge and Remain Independent
Certain acquisitions using tender or exchange offers followed by a merger just got easier to complete. The newly added Section 251(h) of the Delaware General Corporation Law (DGCL) allows parties to complete a second-step merger without stockholder approval under certain circumstances. As a result, transaction structures used to reduce the potential stockholder approval requirements in two-step transactions (such as “top-up” options and dual track acquisitions) are no longer necessary for qualifying 251(h) mergers. In addition, the certainty of a combined closing of the two-step acquisition facilitates leveraged acquisitions and other acquisition-related financing. Lenders can now gain access to a target company’s assets for collateral at the combined closing, avoiding the need for bridge financing to cover the period between closing the tender/exchange offer and completing the second-step merger.Two-Step Merger ProcessIn the two-step … [Read more...] about Paving the Way for More Tender Offers: DGCL 251(h) Streamlines Two-Step Merger Process
Two accounting firms that have provided services for medium-sized businesses in Kentucky and other states plan on merging their practice effective on July 1. Both are CPA firms that have been in business for a number of decades.The hope is to provide clients with a greater range of financial and business consulting type services. "Since both firms have significant strengths in differing service areas, it just makes good business sense to combine the firms to meet new financial and business challenges facing their client bases," stated the managing director for one of the firms.It is felt that the combining of the two firms will allow for these businesses to better compete and also expand at a faster rate. It is claimed that such a merger will also be of benefit to employees as a wider range of career opportunities will be made available. The owners of the two firms hope to accomplish the merger without in any way disrupting day-to-day operations. Offices are to continually be … [Read more...] about Two Kentucky CPA Firms to Merge