Is a merger & acquisition in the foreseeable future for your business?
Our experienced business lawyers at Consilium Law, LLC can help you through the process and can help you maximize the benefits of M&A for your business.
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Mergers and Acquisitions
Mergers and Acquisitions, also referred to as M&A, can be great for business. Some business owners see M&A as a way to strategically partner up with another company in order to capitalize on synergies between the two businesses. Other business owners view M&A as an exit strategy because they want to be bought out of their current business so that they can move on to some other venture. If you are considering a merger or acquisition, the business lawyers at Consilium Law, LLC can help you through the process and can help you maximize the benefits of M&A for your business.
What Is A Merger Or Acquisition?
Mergers and acquisitions are two methods by which two companies can become legally unified into a single business entity. Although these terms are commonly used together, or even interchangeably, there is a slight difference between a merger and an acquisition.
In a business merger, two businesses that are usually equal in size decide to combine together to form a brand new single business entity. There are several varieties of mergers, including horizontal mergers, vertical mergers and conglomerations.
A vertical merger involves either the merging of a business and a customer or a business and a supplier.
A conglomeration occurs when two unrelated businesses merge together.
In an acquisition, a first company takes over a second company that is usually smaller than the first company. The second company is completely extinguished in an acquisition and the first company becomes the new owner of the resulting entity. Business acquisitions can be congenial or hostile.
The Perks of Mergers and Acquisitions
Whether you are the target business that is being acquired or are the owner of the acquiring business, mergers and acquisitions make good business sense in a lot of situations. The benefits are countless, for example:
- Mergers and acquisitions are one of the ways that businesses boost profits and improve productivity and efficiency while simultaneously reducing their overall business expenses.
- Businesses can save money by eliminating redundancies, utilizing economies of scale and scope, scaling back on human capital and,
- Mergers and acquisitions can provide businesses with increased market exposure, more access to wider market and a broader customer reach.
- An acquisition can be used as a convenient business exit strategy – the acquired business owner gets a payout and hands over the business, debts, obligations, assets and all.
If M&A is part of your future business plan, there is immense benefit in planning for your business merger or acquisition with a qualified business lawyer, like the professionals at Consilium Law, LLC. At Consilium Law, LLC, we will work with you to identify potential M&A target businesses and help you recognize potential synergies that a merger or acquisition could have on your business.
Once you have decided that M&A is right for your business, we will negotiate a favorable M&A deal for you by focusing on your business goals.