CORPORATE MERGERS & ACQUISITIONS

(M&A Attorneys)

Dallas-Fort Worth business law and commercial litigation attorneys represent individuals, professionals, and businesses with mergers and acquisitions.

BUSINESS MERGERS & ACQUISITIONS 

What Is A Merger & Acquisition (M&A)?


Mergers and acquisitions, or M&A, is the process through which two companies are merged into one company.  The goal of a merger and acquisition is to allow two companies to join forces and, as a whole, to meet or exceed the entire net worth of the companies individually. In other words, the whole of the new company meets or exceeds the sum of the individual parts of each separate company.  Most business mergers are mutually agreed to, and the two companies become equal partners when the merger is complete.  Our corporate, commercial and business attorneys serve the legal needs of entrepreneurs, startups, and companies of all sizes and can assist you with purchasing a business.


What Is An Acquisition?


Acquisitions occur when one company buys another company and then merges its products and employees into itself.  An acquisition can either be friendly if it is a mutually agreed-upon acquisition or hostile if someone buys a sufficient amount of stock to take it over.  Our business attorneys can advise you on a wide range of legal matters, including corporate law, contract law, copyright registration , trademark registration , mergers and acquisitions, corporate governance, and litigation .   


What Are The Benefits Of A Merger & Acquisition?

A merger and acquisition is a growth strategy designed to increase a company's size, service area, talent pool, and customer base.  Some of the advantages of a merger and acquisition include the following:

 

  • Economies of Scale: The larger merged company may be able to acquire raw materials and goods at a lower cost than either company individually. Further, the merged company may be able to centralize its distribution network or expand its geographic service area with less effort and cost. 

 

  • Market Cap Increase: The merged company may have a bigger market capitalization, allowing it to leverage competitors, lenders and suppliers. 

 

  • Labor Cost Reduction: Mergers often eliminate redundancies resulting in staff and associated cost reductions while achieving more sales with fewer resources. 

 

Whatever your corporate services needs may be, our business attorneys have the talent, resources, and merger and acquisition experience to meet your needs in an efficient, timely, and cost-effective manner. However, a merger and acquisition are not without risks, and some potential complications may include the following:

 

  • Marketing Discord : Customers may resent the merger, or stockholders may negatively react to the merger and acquisition.

 

  • Opportunity Cost: The time, effort, and expenses in a merger and acquisition can be enormous; therefore, other opportunities may be lost as there are no resources or time available to explore those other opportunities.

 

What Is An Asset Purchase Agreement?

An asset purchase agreement is a contract between a buyer and a seller to purchase and sell some or all of a company's assets. A buyer who is interested in taking over the assets of another company can do so in two ways: i) acquire all of the shares in a company from the individual shareholders and, therefore, both its assets and liabilities; or ii) only take over certain assets of a business and leave the shares owned by the company. Our business lawyers can assist in negotiating and drafting your asset purchase agreement and helping you understand the importance of identifying the specific assets to be purchased, such as: 

 

  • Intellectual Property
  • Trademarks
  • Copyrights
  • Know-how
  • Plant & Machinery
  • Buildings & Leases
  • Assigned Agreements
  • Goodwill
  • Other Intangible Assets

 

Our experience with contract negotiations and intellectual property gives our attorneys the ability to assist you with your merger and acquisition due to diligence reviews, including valuations for both buy-side and sell-side acquisitions.

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Additional Mergers & Acquisitions Focus 

What is Due Diligence in An Asset Purchase Sale?

Due diligence is a comprehensive review and appraisal of a seller's business prior to a potential buyer closing a merger or acquisition.  The investing buyer will undertake this due diligence to ensure the seller is an appropriate acquisition target. Our corporate attorneys will review the target company’s assets and liabilities, structure, operations and key business relationships. This information allows a buyer to value and evaluate the strategic commercial potential of a business acquisition or merger.


Checklist For Mergers & Acquisitions Due Diligence

Any successful merger or acquisition starts with doing all necessary due diligence to evaluate the business to be acquired. Our corporate lawyers can assist you in performing the due diligence and comprehensive business review to help you complete any complex merger and acquisition transactions.  Some of the legal services we offer in merger and acquisition transactions include the following:


Review of Corporate Structure : Our Dallas corporate attorneys will carefully review the corporate structure, capitalization, organizational documents, and general corporate records of the company in order to ensure that everything is in order, including: (i) s tock option agreements; (ii) stockholder and voting agreements; (iii) stock appreciation rights plans and related grants; (iv) recapitalization or restructuring documents; (v) board, shareholder, and/or executive committee meetings and minutes; and (vi) all agreements related to the economics of the seller's business, such as accounts receivable and accounts payable.


Review Federal & State Sales Tax Issues:   Our corporate attorneys will carefully review the tax structure of the seller's business to ensure it complies with all federal and state taxing authorities. Documents our attorneys would review include the following: (i); federal, state, and local income and sales tax; (ii) tax returns and documents filed with the IRS or sales tax authorities; and (iii) corporate books showing the income, balance sheet, and underlying transactions for at least five-years period.


Contract & Licensing Review:   Our corporate attorneys will review the contracts and licenses of the seller's business to ensure they are transferable and, if not transferable, seek consent from the contract and license holders. Some the the contracts and licenses our attorneys will review include the following: (i) license agreements; (ii) supplier contracts; (iii) customer contracts; (iv) reseller & distribution agreements; (v) guarantees, loans, and credit agreements; (vi) equipment leases; (vii) franchise agreements; (viii) non-compete, most favored nation and exclusivity agreements; and (ix) employee and subcontractor agreements.


Identification Of Material Assets:   Our business attorneys will ascertain the assets of the seller's business, including: (i) inventory; (ii) plant & equipment; (iii) real estate; and (iv) technology and development.


Intellectual Property Due Diligence:   Our intellectual property lawyers will review the technology and intellectual property of the company to be purchased. Documents our intellectual property attorneys would review include the following: (i) patents; (ii) trademarks; (iii) copyrights; (iv) trade secrets; (v) domain names; and (vi) all IP litigation or other liens or encumbrances on intellectual property.


Litigation, Compliance & Regulatory Diligence :  Our corporate attorneys will review any litigation or compliance issues regarding any aspect of the business, the assets of the business, or the intellectual property of the business.  It is important to know if the asset or company purchase would include potential legal or other liabilities. 


Our Dallas merger & acquisition attorneys can assist you in the strategic management of your business ventures and due diligence efforts to ensure a successful merger and/or acquisition . 

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Recognized in the legal industry as dedicated board-certified lawyers and Rising Stars.

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Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. Creative Translations from the Public Domain In certain cases, a translation may be creative enough to warrant its own copyright. For example, a translator adapting a classic work or a book in the public domain into modern language may introduce enough originality to qualify for copyright protection. However, direct, word-for-word translations are typically not considered original enough to receive new copyright protection. What About Machine Translations? The Human Creativity Copyright Requirement Machine-generated translations, including those produced by platforms like OpenAI , operate through advanced algorithms that replicate language patterns rather than capture the human touch. Unlike translations crafted by human translators who often infuse cultural insight and genuine emotion into the work, OpenAI's output is rooted in statistical patterns and data. Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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