Is it time to consider a merger?

On Behalf of | Sep 3, 2020 | Business Law |

You have a fantastic company that is bringing in a lot of money. Your competitor is doing well, too. You both have slightly different markets, but the overlap is enough that you see that there could be a benefit to joining forces. By merging, you believe that you’d be able to access more of the market overall, and your merged company would, essentially, control the market in your region.

If you’re thinking about merging with another company, you should know that the negotiations can take a long time. You first have to approach the other company’s owner with the idea of merging, if they haven’t approached you yet. Then, you will need to work with your attorney to determine what it would take to make this merger beneficial to you and your team. In some cases, the buyer may not want to have the same staff. You may also want to step away of the business or ask the other party to step away, depending on who is buying and who is selling.

If this is the only offer you’ve had (or have made), you may also want to look into other similar companies to see if a different merger would be more beneficial to you.

If you do move forward with this merger, then the likelihood of accomplishing the goal quickly is low. Most mergers take around four to six months, but they can take longer. You will need to provide a history of your financial statements to the other party if they are the buyer. If you’re buying their business, then you need to ask for theirs and have them reviewed, too.

The entire process is complex, which is why most people who want to merge companies do work with an attorney throughout the merger.