Business litigation is a concern for any party entering a complex business transaction which is why understanding the details of the transaction can be important. An aviation company, Landmark Aviation, recently completed its acquisition of local Ross Aviation. Ross Aviation is the owner of the Louisiana Aircraft fixed base operation which is located at the Baton Rouge metro airport. Landmark is already a fixed base operator in two airports in two other Louisiana cities. Landmark s based in a nearby state and Louisiana Aircraft acquired was acquired by Ross in 2013. The acquisition price for Landmark in this transaction was $330 million.
Acquiring a new business, and selling a business, is typically a one-time transaction for both the buyer and the seller of the business. Of course, each party wishes to avoid business litigation associated with the transaction which is why it is important to have a clear understanding of the important considerations involved in the sale or purchase of a business. Regardless of which side of the transaction the party is on, it is important to understand the legal ramifications of the purchase or sale.
When contemplating the sale or purchase of a business, it is also important to sit down and consider the business goals related to the acquisition or sale. The process of buying a company, or selling a company, can be a lengthy process that can involve many important components. For either party, it is important that an accurate valuation of the company be performed; that financing for the purchase, if necessary, is carefully considered; and that the sales agreement contains all the necessary information for a successful transaction.
To successfully conclude a business transaction, such as acquiring a new business, and to avoid possible business litigation, it is essential to thoroughly understand the process of buying a company. With the benefit of relevant knowledge, the transaction can proceed smoothly and have a greater chance of future success as the new owners of the business move forward.
Source: The Advocate, "Landmark completes acquisition of Ross Aviation," August 2, 2014