The Law Office of Lynnette Ariathurai A Professional Corporation

Ares Management to propose business merger in California

Having a business plan in place is not only important for new startup businesses, but it is also essential for a company looking to merge with another business in the near future. This ensures that the acquiring company will obtain the desired market advantages from a proposed business merger, while also being happy with the agreed upon price of the acquisition. This is why one financial company in California has thoroughly vetted a recently proposed business merger.

The company, Ares Management LP, said that strategic acquisitions has already been a part of its overall business plan. However, the company says that its requirements for considering an acquisition deal are high. This recently proposed deal would see Ares Management acquire Kanye Anderson Capital Advisors, which has approximately $29 billion worth of assets.

On the other hand, the two parties are still negotiating the potential deal, which has yet to be finalized. Ares Management would pay for the acquisition in cash and stock shares, according to sources who wish to remain anonymous due to the ongoing negotiations. Kanye is a private equity company that focuses its business on energy infrastructure, oil and gas operations, real estate, private equity and middle-market credit. The company recently raised $1 billion in May for its fourth real estate fund.

When the terms of the proposed business merger are completed the two companies will then have to draft the necessary contracts and legal documents. This will ensure both parties are satisfied with the terms, while also making the merger legitimate under California law. Failure to do this properly can result in misunderstandings, non-compliance and various other possible legal problems.

Source: Bloomberg Business, "Ares Nears Acquisition of Kayne Anderson in Rare Merger", Devin Banerjee, Jason Kelly and Bradley Keoun, June 10, 2015

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