small business merger question

[derekbrian]

Acquisition or merger should be done under strict confidence between the two parties. Through this process one companies shares are taken by other company.

[cpg35223]

Originally Posted by Painbank

I have a sole proprietorship, which I have tenatively agreed to be merged into or aquired as you might put it by a corporation. They are small and privately held.

I would continue to run my business as such within the new corporation as well as become involved with other aspects of the coroporation.

I would be given some ownership of the corporation in compensation for the merger.

A question.

I would expect to have some voting rights of sort in the new company, which has 'sort' of been okayed. Is there a way to ensure my voice is heard in the new company? I would essentially have 33% ownership.

Any other caveats or items I should be aware of, other than that shown above?

I expect to talk with my lawyer about this, but still, a heads up in advance would be cool!

Make certain that you're talking to a lawyer and CPA who really understands the ins and outs of mergers. If your current attorney is not giving you absolute, definitive answers, then get a second opinion. I can't tell you how many times I've encountered a situation where the junior partner is such an arrangement is pretty much stripped of power and basically marks time until the contract has expired.