Various studies over the years have placed the approximate rate of failure for mergers and acquisitions (M&A) between 70 and 90 percent, according to the Harvard Business Review. Yet businesses continue to spend trillions of dollars each year on M&A. These two statistics alone convey the weight of the potential risks and rewards of M&A transactions. Using mergers and acquisitions as a growth strategy can be highly effective, but companies must enter into these deals with an abundance of caution and, preferably, with the guidance and support of a trusted, experienced business attorney. 

Attention to detail is critical when you are starting or reorganizing a business. The legal structure you choose has broad impacts: it determines how taxes must be managed, how liability is allocated, and how your enterprise can be funded, to name a few. Whether you are opening a downtown hotdog stand or hoping to launch the next Airbnb, understanding the options for hospitality business structures is vital to your success. To make sure you choose the formal structure that best suits your circumstances, consult with a hospitality attorney who can help you evaluate the options and choose the business structure that best suits your needs and goals. 

In early 2020, many US states issued shutdown orders to help the spread of the coronavirus. Anticipating widespread need for worker leave and the strain of the shutdown and quarantine orders on employers, the US Congress passed the Families First Coronavirus Response Act (FFCRA). The Act helps small and midsize employers provide employees paid leave necessary for COVID-19-related reasons and is funded by a paid leave tax credit. This blog helps employers seeking to take advantage of these employer tax credits understand who is eligible under the act and the conditions for taking advantage of what is essentially government-funded employee leave.

In any market and industry, businesses sometimes find the best way forward—or out—is through mergers and acquisitions (M&A). A successful M&A transaction, one seen through to completion, is not a matter of luck or circumstance. A detailed and thoughtfully carried out M&A plan is essential to successfully completing an M&A transaction or avoiding one that, in the end, would not be in your business’s best interest. Because of the legal ramifications at various points in the process, an attorney with experience helping clients through the stages of mergers and acquisitions is an invaluable resource for businesses considering this path forward.

On August 3, 2020, a New York federal district court struck down several parts of the US Department of Labor (DOL) April 2020 rule (the April Rule) interpreting the FFCRA (Families First Coronavirus Response Act). The DOL has since issued a revised temporary rule to clarify the department’s interpretation of the paid leave provisions in the Act, but, significantly, it held fast to certain aspects of the prior final rule. How this affects employers across the country remains to be seen, so employers need to closely monitor any future challenges and changes to the DOL rule.