Many Thrilled With Business Merger On The East Coast
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Tuesday, August 15, 2017.
The California home-building industry has definitely seen its ups and downs over the past 10 to 15 years. Many real estate and business analysts say the current market is quite favorable, with promising financial futures ahead for many home building companies. A recent business merger that took place on the East Coast seems to include far more pros than cons, expanding an existing successful company while helping another get out of debt.
The business merger amounted to a $356 million deal between Century Communities and UCP Inc., plus its subsidiary company, Benchmark Communities, LLC. Century Communities was originally based in a western state, but recently expanded its stronghold to include various locations in the southeastern part of the United States. As part of the deal, funds were included to satisfy nearly $150 million of UCP Inc. debt.
Spokespersons for the recent high asset merger say the agreement places approximately 30,000 new building lots in prime building communities into the hands of the new business. There apparently was no trouble gaining approval for the merger deal with all directors of the various boards voting in favor. The new firm already has plans for building several new communities.
Even in the best of circumstances, complications may arise during the proposal phases of a merger agreement. This is why most California business owners hire attorneys to represent them during all stages of development for mergers and acquisitions. A savvy business and commercial law attorney can alert a business owner to potential problems in a prospective agreement and can act on a client's behalf to negotiate better terms.