Business acquisitions can be a good growth opportunity for businesses. Certain assets of an insurance company in a neighboring Louisiana community are being acquired by another company. The independent insurance agency with assets being acquired reportedly handles personal and commercial lines of insurance and produces annual revenues of $3 million. A representative for the acquiring company said that the growth strategies and customer focus of it and the company they are acquiring assets from are similar.
He further said that the assets being acquired and acquiring company complement one another and they believe that acquisition will be a benefit to current and future clients. A representative for the insurance company with assets being acquired said that they believe the acquisition provides their clients with a wealth of new resources. The representative for the company having assets acquired said it is happy that the acquiring company has a strong connection to Louisiana.
Mergers and acquisitions, if conducted correctly, can be an excellent way develop a company and complement the successes of both companies. There are many important legal aspects to be considered when merging companies or acquiring a company or its assets. Considerations including valuations, potential shareholder implications, contractual considerations and a variety of other concerns all must be taken into account. It is important for both companies to understand how to protect themselves throughout the transaction to successful completion of the transaction.
When considering a merger or an acquisition, knowing as much as possible about the process is helpful. Have trained guidance can also help the process run more smoothly and can help it result in success.
Source: The Advocate, “BancorpSouth Insurance Services acquires certain assets of Waguespack & Associates Insurance in Gonzales,” Dec. 19, 2016