5 Tips for a Business Merger
If you are anticipating a business merger in Florida or are considering a business acquisition, there are many considerations you should be thinking about. In particular, small businesses in Florida may be thinking about options for merging in order to grow their brands or their businesses. According to an article in Forbes, there are numerous reasons that a business may be considering a merger and acquisition, and each business will face its own challenges depending upon the particular type of business and size. At the same time, there are some common issues that business owners should consider when it comes to mergers and acquisitions. We have collated some tips from the Forbes article and from articles in The Balance and American Express.
Ultimately, if you are thinking about a small business merger or acquisition, you should always speak with an experienced Florida business law attorney. In the meantime, the following are tips for you to consider.
- Consider the Services Offered and How the Businesses Will Complement One Another
For many small business owners, one of the first considerations in a merger or acquisition should be the reason for merging, and the differing strengths offered by each of the businesses. In many situations involving small business mergers, the aim is to grow the business or the brand, and in order to do so, it will be important to merge with another business that has different yet complementary services.
At the same time, some larger businesses may choose to merge (or one of the businesses will acquire another similar business) even though they offer similar services but have customers in different regions or areas. In other words, in the latter scenario, a business merger might be effective because it will allow the business to reach a wider range of customers.
- Consider: Will You Need to Rebrand?
You should consider whether you will need to rebrand your business. If you will need to rebrand, it will be important to consider your current customer base. According to the Forbes article, 60 percent of current buyers in the Millennial generation “expect consistent experiences” with a brand whether they are buying a product online, over the phone, or in person.
- Know That You Will Need to Do Due Diligence
If you are acquiring another business or merging with an existing business, it is essential to do due diligence. The specific facts of your situation will determine what must occur in due diligence, and an experienced Florida merger and acquisition lawyer can speak with you about this process. Ultimately, you will want to ensure that the business you are acquiring or merging with will actually have the value that you expect it to have. You may need to explore varied financial and tax documents from the business’s past, as well as specific information about customers and investors.
- Get Your Lender Involved As Early As Possible
When you are considering a merger or acquisition, you will want to have support from a lender from the beginning. A business lawyer in Florida can help with this.
- Know Your Goals Prior to the Merger and Acquisition
You should know your specific goals prior to any merger or acquisition. For example, do you want to enter into new markets? Or are you more interested in increasing market share? Or do you have other goals or ideas of success? Identifying your goals can allow you to carefully define your merger and acquisition strategy in order to achieve your goals.
Contact a Business Law Attorney in Florida
If you have questions about mergers and acquisitions in Florida, you should discuss your situation with a Florida business & corporate attorney. An advocate at our firm can speak with you today about growing your business and necessary legal steps to do so. Contact the Law Office of Clifford J. Hunt, P.A. today.