Merger and Acquisition Announcements Laws and Regulations

Handle announcements of business acquisition without breaking the rules

Businesses involved in merger and acquisition announcements must walk a fine line with regard to timing. Disclosure is required, but disclosing too soon may affect the buying and selling of stock. The U.S. Securities and Exchange Commission (SEC) is the main regulatory body that governs mergers and acquisition announcements, at least those of publicly held companies. Your announcement may also be subject to local or state laws, or industry regulations, depending on your business.

Understanding your obligations is not a luxury. It's necessary to avoid penalties and fines. Along with those consequences, a public backlash may hurt your bottom line if you don't follow the rules. Consider this other information regarding merger and acquisition announcements laws and regulations:

1. Per SEC rules, M&A announcements can be made to shareholders prior to and after the filing of the merger or acquisition registration.

2. There are instances in which business deal transaction announcements may be made to the SEC but a limited public confidentiality status can be maintained.

3. A recent revision of rules regarding announcements of mergers and acquisitions allow for the acquirer's financial data to be released only in a cash merger or if it would affect a shareholder vote.

Research the laws regarding business merger announcements

To cover your bases, study the laws and regulations involving U.S. business transactions. Along with reviewing the actual regulation, find sites that can explain what those regulations mean in everyday terms. That way you can more easily understand your responsibilities and comply with the law.
U.S. Securities and Exchange Commission, for the rules. For an analysis and basic review of SEC rules regarding mergers and acquisitions, check out information offered by law firm Debevoise & Plimpton.

Hire an attorney to help you comply with business acquisition announcements regulations

Since rules and interpretations of the rules are constantly changing, it may be best to hire a professional. A law firm that specializes in mergers and acquisitions will keep your business in compliance with all laws and regulations relating to mergers and acquisitions.

Review international regulations dealing with mergers and acquisitions announcements

In a global economy, you know that mergers and acquisitions don't always involve just buying and selling of companies on U.S. soil. When you acquire or merge with a foreign entity, it's best to check with the regulatory agency in that particular country where the asset is located. You may be subject to U.S. laws as well.