The basics of mergers

On Behalf of | May 13, 2019 | Attorneys, Blog, Firm News |

Change in the business environment is not unexpected so it is important to understand. These changes can lead to transformations companies should be familiar with a know what to expect including those from a business merger.

One method for a small business to grow is through a merger which can help it add products and services it does not already offer or provide. Mergers can lower the costs of expanding a product or service for a small business as it seeks to grow and expand its reach. It is important that a business that is going through the merger process is familiar with the legal requirements for a merger to help ensure a successful merger.

A merger can impact the business structure because a merger can be generally understand as the combination of two or more businesses. It is important to note that there are different types of mergers. A horizontal merger refers to when two companies that function as competitors merge. A vertical merger is when two companies that provide complimentary products or services merge. Mergers can save on the costs of production and also allow the merging companies to provide products or services they may not be able to otherwise provide on their own as separate companies.

There are legal regulations surrounding mergers and it is important that all legal requirements are met whenever companies decide to merge. Mergers can be a great benefit to both merging businesses so it is helpful to know how the legal process can help protect the interests of the parties and help the transaction be as successful as possible.