Barneys High Rise Department Stores Seeks a Buyer: What Comes Next
Barneys department store chain moves a step closer to liquidation as the business seeks a buyer. Many may know about the process of bankruptcy that requires companies to sell assets to pay down debt owed to other businesses. What happens, though, in this instance where a corporation searches for a buyer to purchase the company instead of outright closing its doors?
A Dallas Fort Worth bankruptcy law firm such as that of Pronske & Kathman can help businesses sort through the liquidation process and thoroughly explain what happens during the buying process.
Is buying a company the same as a merger?
A merger, by definition of the word, is to combine two things so that they become one. An acquisition, on the other hand, involves a company purchasing another with a mutual understanding that the acquired business may or may not maintain the same customs. An acquired business may go through a name change as well as a transition regarding staff members. The acquired company has little, if any, right to object to such changes.
In contrast, it is not uncommon for merging companies to settle on a compromise that allows both businesses to co-exist. A business, such as Barneys, that searches for an acquisition deal typically lacks the capital needed to negotiate a merger. Thus, executives look to sell the company outright.
Why is a lawyer necessary?
A Dallas Fort Worth bankruptcy law firm like Pronske & Kathman is needed to review contracts and other documents to ensure that all legal measures are met in both acquisitions and mergers. It is especially necessary to seek the services of bankruptcy attorneys when you are planning to purchase a company. You want to be certain that you obtain all rights to the business.
We have handled many business bankruptcy cases in both Dallas and Fort Worth and are happy to hear your situation. Call today to schedule a consultation.