Acquisitions are, in general, excellent expansion opportunities for any company to consider. A Baton Rouge sports store recently acquired a big league bat manufacturer in another state. The company being acquired makes custom wood bats. A representative for the Baton Rouge sports store noted the acquisition adds to both the sports company’s culture and balance sheet. The sports store expects to accelerate growth of the bat making company in all product categories. Both sides, the acquiring company and company being acquired, were positive about the acquisition.
A friendly acquisition can be a perfect opportunity to expand a growing business. Mergers and acquisitions provide for expansion opportunity for a business to expand its offerings and customers, or add to an existing base of employees or infrastructure. It is typically best to engage in an acquisition or merger that is complimentary and not redundant to the business that is already established.
In addition, there are a variety of important legal considerations related to executing a successful acquisition or merger. It is important to understand the due diligence process and to be prepared to properly execute the variety of contracts that will go along with the process. Understanding the negotiation process, as well as tax impacts and implications for employees that are part of the acquisition or merger is also essential. An acquisition or merger may also impact investors, so that potential implication should be fully understood as well.
A friendly acquisition can be an exciting opportunity for both companies and the company seeking to grow and expand in particular. As a result, it is essential to be prepared for all aspects of an acquisition or merger transaction.
Source: The Advocate, “Baton Rouge’s Marucci Sports buys up-and-coming ‘Big League’ bat maker in Pennsylvania,” Feb. 16, 2017