Business Restructuring Lawyers
Businesses restructure by bringing in new owners, buying out current owners, or changing ownership in some other way. There are two general ways that an attorney can assist in this process. One is as an attorney for the business as a whole, not taking the side of any particular individual. The other is as an advocate for one owner to maximize that owner’s legal position in negotiations. Restructuring may involve:
- Stock Purchase Agreements
- Stock Redemption Agreements
- Shareholder Agreements or Stockholder Agreements
- Bylaws or Amended and Restated Bylaws
Whether we are engaged by the business or by an individual owner, KM&A works effectively to draft the clearest and most beneficial legal language for any necessary documents.
Restructure of company ownership
One way that a business can be restructured is by changing the ownership. Ownership changes happen in small businesses for a variety of reasons, including:
- New investors
- Merger of two or more companies
- Employee equity plans
- Shareholder buyouts
- Owner retirement
- Death or disability
Whether a business is bringing on additional owners or consolidating ownership to include fewer owners, it is important for the parties involved to have legal counsel. In restructuring transactions, nuanced legal wording carries significant implications.
Restructure of company entity
Another way that a business can be restructured is by a change to the status of the business entity itself. Come about through a variety of ways:
- Conversion from one type to another (for instance, conversion from a corporation into a limited liability company)
- Merger or consolidation of multiple companies into one surviving entity
- Division or spin-off of one company from another
The different types of business entities that may be involved in a transaction like this include corporations, limited liability companies, partnerships, and sole proprietorships. It is imperative to seek the advice of experienced legal counsel before making any changes to a business’s structure to ensure that you are choosing the type of entity that is right for you and your business goals.
Kraemer, Manes & Associates LLC “KM&A” is a law firm serving all of Pennsylvania with our principal offices in Pittsburgh and Philadelphia. Call KM&A in western Pennsylvania at 412-626-5626 or in eastern Pennsylvania at 215-618-9185. KM&A can be reached by email at firstname.lastname@example.org.