COMBINING OR ACQUIRING COMPANIES

Business is inherently competitive. It drives employees to do their best and beat their rivals. But combining two companies or acquiring another company can result in greater success than each company could have achieved as a single entity. The attorneys at Roderick Linton Belfance, LLP, are steeped in the intricacies of business law, including mergers and acquisitions, and are devoted to helping clients navigate these complicated processes as smoothly as possible.

DETAILS OF MERGERS AND ACQUISITIONS

Some of the biggest companies in the world have been formed by mergers or acquisitions. They can improve the company’s success, diversify portfolios and distribute risk. They can help companies stay ahead of the technological curve, joining forces to increase their market share.

While the terms are sometimes used interchangeably, mergers and acquisitions are slightly different. In a merger, two or more companies combine to create a new entity. Acquisitions entail a company obtaining a majority stake in another company, with both companies retaining their names and structures.

Mergers can take the form of several different agreements. In a horizontal merger, two competing companies agree to combine their forces. A vertical merger involves two or more companies in the same industry that provide different goods or services, which can help reduce costs and increase efficiency. Congeneric mergers involve two companies that serve the same customer base and a conglomeration merger is when two companies combine but do not have any common business areas.

During an acquisition, one company purchases a majority stake in another company, allowing the purchasing company to make decisions about operations without shareholder approval. The benefits of an acquisition include diversification, strategic growth, reduced cost and gaining new technology.

GUIDANCE THROUGH COMPLEX BUSINESS TRANSACTIONS

When your company decides to merge with or acquire another company, starting with lawyers who know the process fluently is vital. The attorneys at Roderick Linton Belfance, LLP, have been helping companies achieve greater success since 1885. Call us today at 330-434-3000 to set up a consultation or use our online form.