Navigating a Hostile Takeover

Comprehensive representation for your business

Mergers and acquisitions are an integral part of business, but hostile takeovers can prove particularly challenging for the acquiring company as well as the target company. Regardless of your company’s role in the takeover, trust our experienced Cleveland business law attorneys to walk you through the process. We will aggressively fight for the best interests of your business.

Trustworthy counsel for hostile takeovers

Hostile takeovers involve numerous players, including buyers, sellers, directors, and stockholders. Whatever your company’s role, our team will counsel you about the positive and negative consequences of the transaction:

  • The acquiring company. Under some circumstances, it is in a company’s best interest to pursue the hostile takeover of another business. We can help you consider the pros and cons of such an endeavor and how to best carry it out. We assist you with the following hostile takeover strategies:
    • Development of a successful takeover bid for presentation to the target company’s shareholders
    • Determination of an appropriate tender offer amount
    • Initiation of a proxy fight
    • Anticipation of target company defenses
    • Identification of shareholders most likely to cooperate

Hostile takeovers are extremely risky for the acquiring company due to the potential for numerous unforeseen circumstances and complications. It is common for takeover businesses to end up with unanticipated debts and uncooperative employees. This is why it is vitally important to secure the services of a trusted law firm early in the process.

  • The target company. We provide knowledgeable guidance for companies facing a hostile takeover, along with counsel regarding the prevention of such acquisitions. We assist companies in proactively identifying potentially hostile shareholders and offer guidance on the best measures of protection. Some of the tactics we help implement include:
    • Differential voting rights for stock securities
    • Employee stock ownership plans to promote employee ownership in the business
    • Establishment of a “poison pill” to make your company less attractive to hostile acquirers
    • Identification of a preferred investor or “white knight”
    • Repurchase of company stocks

Hostile takeovers are extremely complex. Whether your company is the acquirer or the target, it is important to solicit guidance from skilled lawyers who can assist you with document preparation, negotiations and regulation compliance. We also guide you through a proper risk evaluation and benefit analysis.

Connect with an experienced attorney today

At Gertsburg Licata, we offer our clients decades of valuable experience and business knowledge. When you work with us, you benefit from individual attention and aggressive representation. Call our office today at (216) 573-6000 or complete our contact form to schedule a consultation.