Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 54

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 54
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 diligence on our potential targets, we may not identify problems at target companies, or fail to recognize
incompatibilities or other obstacles to successful integration. For example, as we integrate past and future acquisitions and evolve our corporate culture to incorporate new workforces, some employees may not find such integration or cultural
changes appealing and seek other employment. The failure to retain such personnel or to maintain our corporate culture as a result of these acquisitions may preclude realization of the full benefits expected by us as a result of such acquisitions
and harm our business, financial condition or results of operations.

Further, acquisitions may cause us to (i) issue equity
securities that would dilute our stockholders’ ownership percentage, (ii) use a substantial portion of our cash resources, (iii) increase our interest expense, leverage and debt service requirements (if we incur additional debt to
fund an acquisition) or (iv) record goodwill and non-amortizable intangible assets that are subject to impairment testing and potential impairment charges. For instance, in connection with our acquisition
of Bowers, we have agreed to an aggregate purchase price of approximately $475 million, consisting of: (i) approximately $325 million in cash, subject to certain purchase price adjustments and (ii) approximately 2.55 million
shares of Class A Common Stock. In addition, on the terms and subject to the conditions set forth in the Purchase Agreement, on December 31, 2026, NewCo will receive an amount equal to $50 million, payable in either, or any combination of,
as determined in the Purchaser’s sole discretion, (i) cash or (ii) shares of Class A Common Stock. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Recent
Developments—Bowers Acquisition.”

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Delaware law and our organizational documents may impede or discourage a merger, takeover or other business combination with us even if the business combination would have been in the short-term best interests of our stockholders.

We are a Delaware corporation and the anti-takeover provisions of Delaware law impose various impediments to the ability of a third party to
acquire control of us, even if a change in control would be beneficial to our stockholders. In addition, our board of directors will have the power, without stockholder approval, to designate the terms of one or more series of preferred stock and
issue shares of preferred stock, which could be used defensively if a takeover is threatened. These features, as well as