Oregon business owners need solid relationships in order for their companies to reach their full potential. Few companies can operate in a vacuum, and at some point, they will need to enter into contracts with others in order to conduct their business in a way that fosters success. The problem is that the language in those agreements can easily lead to litigation if the parties fail to understand their obligations.
Many Oregon business owners may be considering making a change in the New Year. Whether they plan to retire, move on to new ventures or let go of a struggling company, they have decided to sell their business. Selling a business is not as easy as it sounds, and those facing this decision may have many questions and concerns about how to make the transaction a profitable and positive experience.
In Oregon and elsewhere, mergers and acquisitions are a common business activity that serves an important purpose for existing companies. For a company that wants to grow in certain activities, increase its geographical locations or offer new products, mergers and acquisitions is a strong option that is available. This method of business formation is very effective and generates solutions that can be quickly implemented.
An interesting legal issue was recently litigated in another state but the outcome will be likely be influential in the Oregon courts as well. The legal issue in the business litigation case is when can a company cancel an acquisition of another company when the other party's business sharply declines after entering the contract. The court was given the task of deciding whether the business of the firm had suffered a "material adverse change" after the deal was finalized.