Takeovers of major public companies understandably grab the headlines, but the vast majority of mergers and acquisitions in the US continue to be transactions that are privately negotiated by the parties. Far from routine, most such transactions involve a multitude of legal, tax and business issues and the way these are handled will normally be critical to the success of the deal. And when a European or other international company is acquiring a US business, additional special issues are presented. The purpose of this article is to provide an overview of the more important issues that typically arise in connection with such transactions.
Investment Regulation & Restrictions
A vital issue is whether there are restrictions on foreign investment in the target company's industry or other regulatory factors that might present a problem for a proposed merger or acquisition. While the US prides itself on being open to foreign investment, restrictions are present in several areas.
