Brick Business Law, P.A. Florida Litigation and Counsel

CALL: 855-541-7880

Brick Business Law, P.A. Florida Litigation and Counsel

CALL: 855-541-7880

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844-285-1600

A Trusted Law Firm For
Florida Businesses

Mergers And Acquisitions Gone Wrong: Litigation Risks For Tampa Metro Businesses

Mergers and acquisitions (M&A) activity in the Tampa metro area continues to grow as businesses seek expansion and competitive advantages. While M&A deals can drive growth, they also carry significant litigation risks. Understanding these risks is crucial for businesses aiming to protect their interests and avoid costly disputes.

At Brick Business Law P.A., we offer our many years of experience guiding Florida business owners through successful M&A transactions. Our priority is helping to ensure that your company grows while remaining compliant with the law. Call for a free initial consultation.

Mergers And Acquisitions Can Introduce These Litigation Risks

There are several risks involved in Florida M&A transactions that business owners must consider. These include:

  • Breaches of fiduciary duties: Company executives may be accused of not acting in the best interests of shareholders during an M&A transaction. This often includes allegations of self-dealing.
  • Shareholder disputes: Shareholders may challenge a deal if they believe it undervalues the company or was completed without proper approval.
  • Contractual disputes: M&A agreements are often highly complex. Disputes can arise over breaches of warranties, indemnities or unclear contract terms.
  • Regulatory compliance issues: Failure to comply with Florida’s state and federal regulations can result in investigations, penalties or even litigation.

Additionally, Intellectual property conflicts can lead to litigation. Merging companies often face disputes over ownership, licensing or usage of intellectual property.

Why M&A Deals Go Wrong In Florida

While M&A transactions can be advantageous for all parties, they have been known to go wrong. Here are some of the key reasons why:

  • Inadequate due diligence: Insufficient investigation into the target company’s financials, contracts or liabilities can lead to unforeseen risks
  • Misrepresentation or fraud: Dishonest disclosures about assets, revenue or debts can derail transactions and result in legal claims
  • Cultural clashes: Differing corporate cultures can lead to integration challenges, ultimately affecting business operations
  • Failure to obtain regulatory approval: Industries such as healthcare and technology are subject to strict regulations in Florida – overlooking requirements can derail deals
  • Poorly structured terms: Ambiguous or one-sided terms often become a source of conflict between parties

The trusted team of business law attorneys at Brick Business Law P.A., are here to ensure that your deal remains on track.

How To Protect Your Business During Mergers And Acquisitions

There are several steps to take that can protect your business during an M&A transaction, and our lawyers can offer the assistance you need. Our services include:

  • Thorough due diligence: Analyzing financial records, contracts, liabilities and regulatory requirements to identify potential red flags
  • Clear documentation: Drafting precise, transparent agreements that cover all foreseeable scenarios
  • Communicate with stakeholders: Keeping shareholders and employees informed to minimize disputes
  • Proper valuation and pricing strategies: Avoiding overpaying or undervaluing business assets

Engaging with our experienced business law attorneys can help you identify and mitigate potential risks.

Florida Laws Concerning Mergers And Acquisitions

There are several specific Florida laws you should be aware of. These include:

  • Florida Business Corporation Act: Governs corporate structures, mergers and shareholder rights in the state
  • Florida Deceptive and Unfair Trade Practices Act (FDUTPA): Prohibits unfair or deceptive business practices
  • Non-compete and employment law considerations: Florida enforcement of non-compete agreements can impact M&A transactions
  • Industry-specific regulations: Healthcare, technology and finance businesses must often adhere to additional state and federal guidelines

Our attorneys can significantly reduce the risks in your M&A transaction and help ensure your company thrives.

Contact Us Today To Maximize Your Investment

When pursuing an M&A transaction in Florida, it is important to cover all scenarios. Our team will ensure you draft appropriate agreements, remain compliant with regulations and mitigate potential risks from complex legal issues. Call us today at 855-541-7880 or contact us online to discuss your case in a free consultation. We serve businesses in the Tampa, St. Petersburg and Sarasota areas.