{"id":4454,"date":"2016-04-04T10:47:30","date_gmt":"2016-04-04T15:47:30","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-finances\/merging-with-another-business-questions-for-intermediaries.html"},"modified":"2024-06-06T04:17:08","modified_gmt":"2024-06-06T09:17:08","slug":"merging-with-another-business-questions-for-intermediaries","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/merging-with-another-business-questions-for-intermediaries.html","title":{"rendered":"Merging with Another Business &#8211; Questions for Intermediaries"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Merging with Another Business &#8211; Questions for Intermediaries<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><i>Created by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw&#8217;s team<\/a> of legal writers and editors<\/i><\/p>\n\n                | Last updated\n        <time>\n                            June 06, 2024\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>If you are thinking of <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/mergers.html\">merging<\/a> your business with another, chances are you&#8217;ll want to consult with an intermediary for the process. An intermediary acts as a &quot;middle person,&quot; representing either the buyer or the seller, and can help structure and negotiate the deal.<\/p>\n<p>Is an intermediary a lawyer? No. Is an intermediary an accountant? No. An experienced attorney will handle all the details of the <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/mergers-strategic-transactions-forms-and-contracts.html\">merger agreement<\/a>, while the accountants perform comprehensive financial analysis. Simply put, an intermediary helps execute the merger and acquisitions process.<\/p>\n<p>Choosing the right <a adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/intermediary.html\" target=\"_blank\" rel=\"noopener\">intermediary<\/a> is crucial to the success of your transaction. The following list of questions can help you determine if the intermediary is qualified to represent you in this undertaking<\/p>\n<h2>Experience, Knowledge, and Professional Standards<\/h2>\n<ul>\n<li>What is the intermediary&#8217;s education and experience?<\/li>\n<li>What type of companies has the intermediary and his or her firm worked with?<\/li>\n<li>What size and type of transactions have this intermediary and his or her firm completed?<\/li>\n<li>What has the intermediary&#8217;s track record been on other transactions?<\/li>\n<li>Can the intermediary and the firm provide references?<\/li>\n<li>Is the intermediary licensed? If so, which licenses and in what states?<\/li>\n<li>Have there been any regulatory complaints or administrative actions taken against the intermediary or other members of the intermediary&#8217;s firm?<\/li>\n<li>Are the intermediary and\/or the firm members of any industry group which requires its members to a follow a code of professional conduct?<\/li>\n<\/ul>\n<h2>Firm Quality<\/h2>\n<ul>\n<li>How many intermediaries does the firm employ?<\/li>\n<li>How long have these intermediaries been with the firm?<\/li>\n<li>What are the backgrounds of key members in the firm?<\/li>\n<li>Do members hold any special designations?<\/li>\n<li>How is intermediary recruiting done?<\/li>\n<li>How many members of the firm will be working on your project?<\/li>\n<li>How will information be communicated with personnel working on your merger?<\/li>\n<\/ul>\n<h2>Capabilities and Services<\/h2>\n<ul>\n<li>What types of investors does the firm track in its database? Do they fit with the type of investors that would be interested in your proposal?<\/li>\n<li>How much and what sort of information does the firm keep on potential investors?<\/li>\n<li>How often is the investor database updated?<\/li>\n<li>Does the firm participate in industry networks?<\/li>\n<li>Is the firm&#8217;s investor base limited by industry, size, or geography, and are the limitations in keeping with your needs?<\/li>\n<li>Will the firm provide you with sample offering prospectuses and memoranda?<\/li>\n<li>Can the intermediary provide guidance on terms, pricing, and how to structure the deal?<\/li>\n<li>Can and will the intermediary be involved throughout the entire negotiation, and to what extent?<\/li>\n<\/ul>\n<h2>Negotiation and Confidentiality<\/h2>\n<ul>\n<li>Get a sense of the intermediary&#8217;s listening skills and ability to ask appropriate questions.<\/li>\n<li>Does the intermediary seem genuinely interested?<\/li>\n<li>Does the intermediary seem able to adapt to change and think on his or her feet?<\/li>\n<li>Does the intermediary seem to take an open and creative approach to solving problems, or does his or her approach seem more rigid?<\/li>\n<li>What approaches does the intermediary prefer in arranging a deal? Are you comfortable with that style?<\/li>\n<li>Does the firm require potential investors to sign a confidentiality agreement? What are the key provisions?<\/li>\n<li>How does the firm guard against releasing sensitive or confidential information?<\/li>\n<li>Does the intermediary seem to take confidentiality seriously?<\/li>\n<\/ul>\n<h2>Next Steps<\/h2>\n<p>If you are considering working with my intermediary, make sure you hire one that will help you make the best possible deal. If you have legal questions, speak to a qualified <a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/\" target=\"_blank\" rel=\"noopener\">business and commercial law attorney<\/a> in your area.<\/p>\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" 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