If you are looking to expand your business empire, you may be considering buying a smaller business. However, while business mergers can be a great move, they can also be incredibly complex. A merger will often involve prolonged negotiations between the different parties before they agree on the value of the company, which is for sale and the terms and conditions of the merger. If the law is not properly followed during a merger, it could cause the deal to break down. Below is a guide to 3 things you should consider when considering a business merger.
The End Goal
When planning your business merger, you should first carefully consider the purpose of the merger. There are many reasons a company may wish to merge with another. These include:
During the merger process, it is easy to lose sight of your end goal. By keeping your end goal in sight, you can ensure that you get the best out of any negotiations.
The Employees You Wish to Keep Onboard
A merger will usually result in some job losses at the company which is being bought out. While negotiating the merger agreement, you should consider which employees from the other company you wish to keep onboard. If there are employees who have a particular skill set or who have built strong relationships with clients, you should ensure that they are transitioned over to new roles within your company.
You should also be aware of and prepare for possible problems your company may face during the merger negotiations. These challenges include:
If you are considering carrying out a merger, contact a commercial lawyer today.Share
3 February 2017
My brother wrote a really awesome app last year, and he got a whole lot of downloads straight away. It's been pretty awesome for him to see so many people enjoying his work. I have been helping to get him some advice on how to manage his copyright issues so that he can make the most of all of the characters and ideas that he has put so much work into. It's been really interesting seeing how much work there is behind the scenes in protecting copyright. I hope you find it useful in thinking about how to structure your own business and get relevant legal advice.