Tips To Consider Before Moving Ahead With A Company Merger

27 July 2019
 Categories: Finance & Money, Blog


Are you and another company looking to join together in the near future? Perhaps you see some kind of synergy between the two firms that will allow everyone to make more money. While that's great, you should also realize that a merger is obviously a very big step with possible long-term consequences. There could be conflict as employees from the two companies come together, or you might have to end up laying some people off in order to get everyone to truly fit in with the new vision. In a worst case scenario, there might even be anti-trust concerns from the government. Here are some tips to keep in mind before you move forward.

Study the Financials with the Help of an Expert 

You might see a lot of synergy between yourself and another firm, but are you sure the long-term benefits will still be there 5, 10 or 20 years from now? A financial expert that deals with mergers and acquisitions can help you study the situation. They won't just look at your books or the other company's, they'll also study your industry or market and give you projections for what might happen as you move into the future. Merging companies together could mean less competition, but how will the market react to that?

Don't Forget the Human Element

Mergers and acquisitions can be stressful on the regular employee level. It could be helpful if you consider putting together a transition team to help with the process. Your employees will surely have questions about the future, and you can let them know what's going to happen as each company's policies come together. You may also be able to share a bit of your financial goals for the future. Showing employees a research report or case study conducted by your financial expert might go a long way towards showing everyone that things are going to be OK or even better than they are now.

Be Aware of Anti-Trust Concerns

If you are a large company and you are merging with another company in the same industry, this could result in some scrutiny from the government. The government likes to see a competitive marketplace and if your merger creates a company that is too large, there might be anti-trust concerns. A financial expert can take a look at the situation and give you advice. You may be willing to sell off parts of your business after the merger in order to complete governmental review. An expert can help you decide which parts to sell to a third party in exchange for keeping the rest of the combined companies together.

Contact an expert on mergers and acquisitions today for more information.


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