When Should a Small Business Consider a Merger?
A business is cyclical and throughout its existence it will see a: startup, growth, maturity, decline, and then once again growth or a certain end. Depending upon where you find your business in this cycle a merger or acquisition could be an opportunity or a dire need. M&A can be of peak interest when you are looking to:
- Increase market share.
- The profit potential is higher when acquiring outside firms as opposed to investing in existing businesses.
- Partnering with other businesses can ensure survival.
- Restructuring equity and debt to make loans cost less, which will attract new shareholders.
As with any business dealing, setting up an M&A agreement is challenging and requires a lot of TLC to get it done right. An M&A can take months or even years to complete from start to finish. Talk to one of our attorneys today if you are looking at possibly merging with or acquiring another company.