Acquiring new businesses is a positive step for most companies which is why it is important that acquisitions be executed properly.
A Louisiana home-nursing company recently announced it will acquire a Louisiana hospice company and that is has also acquired home health companies in other southern states. The annual revenue of the three acquired companies was stated at $1.5 million. The company hopes for the hospice to serve a large area which will require growth and hiring of additional employees. The major Louisiana-based home nursing company has 342 locations across 27 states.
Acquiring a new business is typically a good sign for a growing and successful company. Sometimes, however, the process of buying a company can lead to disputes. That is because acquiring a new business can have many aspects, as it is a complex business transaction. Trade secrets, breach of contract and nonperformance disputes, to name a few, can sometimes arise and lead to business litigation.
Other important considerations can arise through the valuation process and employee considerations may also be pertinent when buying a new company. Any serious acquisition will entail a due diligent process that will require a thorough review of the performance, both prior and forecasted, of the business being acquired, as well as its assets, liabilities, personnel and other important details. It is also important when acquiring a new business that the corporate strategy and goals of the acquiring company are served by any acquisition.
Because there are a multitude of important considerations when acquiring a new business, and all companies desire to avoid becoming entangled in business litigation, it is important to have the proper guidance. An experienced business attorney can serve as a guide throughout the acquisitions process and help navigate disputes and other concerns.
Source: The Advocate, “LHC to acquire New Orleans hospice company,” Feb. 10, 2014