A business merger is when two companies that are doing the same thing come together to form one larger company. It can allow them to gain a larger market share, reduce operational costs, improve sales and marketing efforts, and expand into new geographic regions. In addition, a merger can help to ensure a company stays open when their finances start to struggle and they may be facing bankruptcy.
A successful merger requires thorough research to determine if it will benefit the business. A Milwaukee mergers and acquisitions lawyer can assist with this process and ensure the interests of both parties are met. They can help to establish a fair market value for the business and develop strategies for integration of the two companies.
Mismatches in culture, technology, and objectives can be challenging to overcome. Employees can be nervous about their future, and there could be a loss of customers and suppliers. There is a risk of litigation from shareholders and competitors.
The acquiring company must be careful not to violate antitrust laws, which could lead to government intervention. Mergers are more complex than purchases and can be time consuming and costly. In addition, there are several different ways a deal can go sideways. For example, it might be subject to antitrust laws if the federal government is concerned the new company would create a monopoly and lessen competition in the marketplace.
About the Author
