Whether you own a small business, a medium sized business with several locations or a large multi-national firm, you are always thinking of ways to improve and grow your business. Sometimes, growth and progress can come when a business merges with or acquires their competitor. It's a good way to corner the market for sure. Whatever your thinking behind a merger or acquisition, the experts at Dale M Maas Attorney at Law are here to support it.
There is a slight difference between a merger and an acquisition. While two businesses become one business at the end of the day, the means and language by which it happens is slightly different. A merger is a more even style of blending the business, as evenly as possible, one might say. Meanwhile, an acquisition generally buys out the other business, removing the name and, oftentimes, the means of doing things, including policies and procedures.
Therefore, merging is a little more gentle transition and an acquisition is a little more harsh, generally speaking. However, both styles of combining businesses can yield favorable results for both parties. It just depends what each party's goals are when coming into a situation where two businesses become one. Maybe one party wants to expand their territory, while the other is looking to sell their business and retire.
That would be a perfect scenario for an acquisition. However, as with any business negotiation, one party may not let the other party know of their true goals and intentions upon the first meeting. It may take more time, negotiations and a relationship to be built before the two competitors can come together to make one business contract. This would be a big move for any company, but lots have accomplished this feat and more will continue to in the future.