When your car dealership is part of a merger or an acquisition, it can be thrilling for everyone involved. The internal changes that come with a merger or acquisition can take up a lot of your time. The reconstruction of the business or the transition of leadership promises to monopolize your work hours and your energy. The experienced auto dealer law attorneys at the Arenson Law Group, PC offer our services to car dealerships undergoing a merger or an acquisition. We can manage the various legal requirements that arise when two or more companies combine while you attend to the business details of your transaction. From advice to paperwork, we are ready to help you handle a successful deal.
The automotive industry has become increasingly complex and active over the past decade. Once-small dealerships have merged with larger entities, creating entirely new businesses. Juggernaut companies have been acquired by former competitors, leaving voids that other businesses are eager to fill. Precisely because the industry is becoming so mobile, our skilled legal team is excited to lend our knowledge and experience to car dealerships involved in these transactions. We can aide sellers and buyers alike at any stage in a merger or acquisition.
What We Can Do
Combining multiple business entities can involve sorting through a huge amount of complex problems. Without legal counsel to help you negotiate your deal and review your gains, you may discover a serious misstep that will impact your future. We understand that mergers and acquisitions require vast amounts of time, finesse, and dedication. Our experience can be brought to bear for you to ensure that your negotiation is not beset with legal problems.
We offer assistance at any stage in the merger or acquisition process. Our services include but are not limited to:
- Advise in the drafting of contracts
- Initial legal consultations
- Handling liquidations
- Assisting in financing
- Managing other legal issues for the merger such as regulatory compliance
Having a team of lawyers working for you can help you maximize your gains in your merger or acquisition. We are prepared to support you as you work through this complex, exciting business deal.
Frequently Asked Questions
When the structure of your company is about to change, or when you’re considering making a change, you will no doubt have some uncertainties about the best strategy for your business. Some of the common questions our attorneys for car dealerships receive about mergers and acquisitions include:
Can you help me with the name of my company if we’ve recently acquired or been acquired by another dealership?
Car dealers are very protective of their names, with good reason. You’ve worked hard to build up your business and create some name recognition. Our car dealership lawyers can help you work through any issues surrounding changing the name of your partnership. For example, if you are still the sole owner of your business, you can keep your original name. Many dealerships are limited liability companies, in which case the name of the business is whatever is registered with the state. No matter what your situation is, we can help you resolve the issue.
Can you help if I have concerns about the contract between my dealership and another dealership if we’re involved in a merger?
Of course! Having an attorney thoroughly review any merger agreement is essential. You’ll want to make sure the terms of the contract match whatever agreement you’ve reached with your new business partner, and you want your rights to be protected. We’d be happy to review your merger agreement for you, and if there are any issues, we’ll be sure to make you aware of them. We can even assist in the drafting of contracts to make sure you’re properly protected and that your interests are accounted for in the deal.
What if the overall structure of my business is changing as a result of a merger or acquisition (i.e., from sole ownership or a partnership to an LLC)?
Changing the structure of your business after a merger or acquisition is a complicated process. It’s important that the change be done correctly and in compliance with the relevant local, state, and federal laws.
For example, there are different tax requirements for sole proprietors of a business than for the partners in an LLC. Corporations are also required to hold shareholder meetings. If you don’t account for these sorts of things after a merger or acquisition, you could face severe legal and financial penalties. Avoid any potential legal trouble by getting in touch with one of our experienced attorneys for car dealerships.
What if I’m facing litigation after a merger or acquisition?
Not all mergers and acquisitions go smoothly, and sometimes one or more parties to the deal end up filing a lawsuit against another party. If you’re involved in litigation because of an acquisition or merger, it’s crucial to get proper legal counsel. If you don’t get an experienced lawyer to represent you, you could end up paying a steep price, perhaps even the loss of your business. Our car dealership attorneys are experienced litigators and can provide the guidance you’re looking for, as well as represent you during court proceedings if necessary.
Our auto dealer law attorneys at the Arenson Law Group, PC can use their practical know-how and unmatched work ethic to help your merger or acquisition excel. We want to help you come out on top. Contact us today at (319) 363-8199 to learn more about how we can help you ensure a bright future for yourself and your business.
Written by James H. ArensonLast Updated : October 13, 2023