There are many ways for businesses to change and grow, including through mergers and acquisitions, which is why business owners should be familiar with the legal ramifications of growth options. Many business utilized these options last year, as there were some significant business deals and projects announced in the Baton Rouge area. Low natural gas prices have been fueling south Louisiana’s industrial growth. A private equity firm formed in the wake of an acquisition by some of the acquired company’s executives made a series of local deals possible. The private equity firm grew throughout the year with a series of acquisitions.
In terms of dollar value, one of the biggest projects, a proposed $9.4 billion project along the Mississippi River, would greatly benefit the Baton Rouge area if a final investment decision to move forward is made. The industrial complex could provide thousands of jobs. Another deal made during 2015, a $6.2 billion cash and stock acquisition deal with Baton Rouge ties, created the largest specialty chemical maker in the world.
The merger of two Baton Rouge banks was also completed during 2015. The bank merger, also described as an acquisition of one of the banks by the other, created the largest bank locally headquartered in the region. During a busy business year for the Baton Rouge region, other high value business deals were also made as companies continued to expand and grow.
Business growth and expansion like this presents unique and exciting opportunities but can also lead to a number of questions and challenges. Understanding the legal implications of changes to a company, such as a merger or acquisition, can help usher the changes through in a positive manner for the overall growth and success of the company.
Source: Business Report, “Top Business Deals of 2015,” Stephanie Riegel, Jan. 20, 2016