Growth opportunities can be exciting, yet also complex at times, which is why understanding the process of buying a company can be important. A bank that began in Baton Rouge recently went public; the initial public offering grossed $46 million and included the issuance of 3.3 million shares. The bank began as a single branch and now has 11 locations in southern Louisiana; the company plans to open two more branches over the next two years. The corporate strategy that the company is employing moving forward is to grow in existing markets, but also to grow through the acquisition of small banks.
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.
A thorough understanding of a business opportunity can help better ensure its success. It was recently reported that a utility company a couple of hours north of Baton Rouge received a $5 billion, unsolicited, offer from an infrastructure investor. The reports caused the utility company's stock price to rise. Stock prices for the utility company have ranged from $43.69 to $56.37 over the past year but the company is looking for $61 to $62 a share and has hired a prominent investment bank as an advisor. The utility shopped itself around last year but failed to garner the price it was looking for in any acquisition.
Acquiring new businesses is a positive step for most companies which is why it is important that acquisitions be executed properly.
A newly formed strategic merger with a Baton Rouge outdoor-lifestyle company and an Illinois outdoor products company was recently announced. The merger is between Plano, a fishing accessories and outdoor sports storage system company, and Synergy Outdoors, based in Baton Rouge, which specializes in outdoor-related brands.
Complex business transactions require careful consideration and special attention in order to avoid unwanted results. Poorly negotiated Mergers, for example, may lead to business litigation, wasted time and money, and a situation where neither party is happy with the resolution. In some instances, the merger may be disallowed from occurring. Therefore, when one considers acquiring a new business or buying a company, he should consult with an experienced business transaction attorney.