A Louisiana affiliate of the television broadcasting company National Communications Inc. has entered into an agreement to acquire the a television station in Texas. Station KUQI-TV, which broadcasts from Corpus Christi, Texas, is currently a Fox affiliate. National Communications Inc. has also entered into an agreement with London Broadcasting Co., based in Dallas, to provide various services to KUQI throughout the year.
Mergers and acquisitions can be complex business transactions, which often require significant foresight and legal preparation. In this instance, the agreement between National Communications Inc. and London Broadcasting requires approval from the Federal Communications Commission.
Buying a company or acquiring a new business can be difficult to execute successfully, especially without proper preparation. When a company is weighing the risk-benefit analysis that includes legal issues, the considerations have steep financial implications.
When considering an acquisition or a merger, it is advisable to consult with legal experts who understand potential complications. Legal advice will help educate the individuals and businesses to attempt to avoid problems and potential side effects.
Issues like divergent business strategies, competing corporate cultures or loss of focus on core business goals and needs are problems that may mean failure to a potential merger or acquisition. Even simple business transactions can benefit from the protection and assistance of legal counsel or oversight.
Regardless of whether an acquisition is friendly or hostile, legal oversight adds a safety net to the process. Considering that a significant number of mergers and acquisitions fail every year, having an added element of assurance can make the process less intimidating.
Source: Corpus Christi Caller Times, “Louisiana broadcasting company to acquire Costal Bend Fox affiliate,” Mike D. Smith, Mar. 15, 2012