What To Consider Before A Merger

Your lawyer—or a team of lawyers—will handle the legal aspects of a business merger. By choosing a firm experienced in mergers and acquisitions, you will receive advice on everything from deal structure to applicable regulations. They are there to assist you through the entirety of the process.

As a business owner, many factors go into your decision of whether to pursue a merger. Two businesses combine to give their new formation more presence in a particular market, more resources, and for countless other reasons. But the wrong merger could harm both companies. 

See What Can’t Be Seen

Look beyond the numbers and the profits. What values did you base your business on? What kind of culture did you promote? And how does this pair with the company you are merging with?

The company that you are interested in merging with has value to you. Otherwise, you would not be pursuing a merger. But their foundations and culture may clash with your own. Some of the best businesses run on processes and systems. Take a look at how this may change after the merger is complete. 

Integration Is Paramount

A merger is complex. There are valuations, market share analysis, personnel and assets, and studies surrounding each company’s product or service. The period of integration of the two companies might be the most complex element

There are tangible and intangible things to consider. Your ability to weave two companies together starts before the merger is complete. If you are buying another company, you and your advisors will have a due diligence period. During this time, the due diligence team will confirm facts, analyze financial information, and investigate anything that will impact the merger. 

The people on the due diligence team will spend anywhere from 30-90 days doing this. They will have a profound amount of knowledge about the inner workings of the business you are about to buy. There is usually a due diligence team and an integration team, and there needs to be a tremendous amount of communication between the two. 

People who helped during due diligence can join your integration team as well.

Don’t Forget The Employees

Due to the complexity, it is easy to lose the pulse of the individual employees. Depending on the size of your company, you cannot be fully expected to meet with every employee. But that doesn’t mean you can’t spend time with them. 

Just listen. 

Instead of explaining the process or controlling your merger’s narrative, let the employees express their feelings and concerns. Build your conversations around their problems. 

Neve Webb

If you wish to proceed with merging with or acquiring another business, do so with confidence. Have experienced legal counsel to assist and advise you throughout. Contact the attorneys at Neve Webb to schedule your consultation.

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Neve | Webb Law Firm

Our experienced attorneys focus on business law, criminal defense, professional licensing, and civil litigation. If you seek aggressive advocacy and rigorous integrity, look no further than Neve Webb, PLLC.

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