Gears MeshingA merger or acquisition could be a great way to expand your business. By undertaking a merger or acquisition you may be able to:

  • Expand the range of products you are able to offer your customers
  • Access new customers and marketing channels
  • Increase your sales base, thereby allowing you to better fill your existing capacity
  • Access new geographic markets
  • Bring in skilled staff members
  • Gain new technology
  • Boost profitability

With small to medium sized businesses, acquisitions tend to be more common and popular than mergers. Perhaps the main reason is that in an acquisition, the buyer takes control over the combined business. As a result, the new owner is able to direct operations as they choose after the deal is done.

With mergers, on the other hand, control may need to be shared. This means significant compromise may be needed to get a deal done and operate the combined business. Mergers can, however, often be cheaper than acquisitions. The parties may simply agree to combine their operations with limited or no additional investment by either party.

Many factors need to be taken into account when deciding on a business to acquire or with which to merge. Also, careful planning is needed to ensure that operations are combined smoothly and that maximum benefit is achieved from the transaction.

If you are considering an acquisition or merger, why not benefit from our considerable experience in this area. We have represented both buyers and sellers in acquisition and merger transactions. We can help facilitate your transaction and provide guidance throughout the process. Contact us to discuss your plans and how we can help.