Business growth and opportunities can take many forms, including through acquisitions and mergers. An international insurance broker that has completed more than 300 acquisitions worldwide in the past 12 years has also purchased multiple well-established Baton Rouge insurance agencies. A local man who worked for the company’s first Baton Rouge acquisition has now become the company’s regional president. In a recent interview, the many said that not much in the way of day-to-day operations changed after the Arthur J. Gallagher & Co. purchased the company he worked for back in 1991.
In the interview, the regional president claims that when an independent insurance agency is acquired, the larger company wants for that agency to continue to operate but with more expansive resources at its disposal. Acquisitions may open up new markets or complement the company’s current presence in the market, according to the regional president. He further reports that the top acquisition questions he asks are about price and the impact the move will have on people.
Whenever acquiring a new business, parties likely seek a smooth transaction and transition. Mergers and acquisitions can be an important growth opportunity on the list of business goals for company. Likely not on the list of business goals is business litigation which can, at times, be a reality of doing business. However, knowledge and understanding of the merger or acquisition process beforehand can help ensure a thorough process is conducted and a smooth transaction is completed.
With the appropriate planning, many business goals can be achieved without the need for business litigation. When it is inevitable, however, responses are available to help focus on continued success of a business and its future growth.
Source: Greater Baton Rouge Business Report, “Merger Mania,” David Jacobs, Oct. 13, 2014