Should your Baton Rouge business consider a merger?

Should your Baton Rouge business consider a merger?

On Behalf of | Aug 1, 2019 | Mergers & Acquisitions |

There are a number of ways that a business can grow. One way is to engage in more aggressive and targeted marketing campaigns. Another way is to increase spending in development of new products and services. Expanding operations to other locations and increasing one’s online presence can help spur growth, too.

Yet, these options aren’t always a wise move. In fact, when these options aren’t adequately analyzed, they may lead to financial catastrophe. This is why it is usually wise for businesses to discuss their growth plans with an attorney who can help them identify legal vehicles that may help them reach their goals.

One of these legal vehicles is the merger. A merger occurs when two business combine to form one. By doing so, the newly formed business can see many advantages. To start, it can allow a business to get a foot in the door in a new market or acquire a larger share of a market in which it already operates. By merging, a business can quickly expand its presence without putting in the time, effort, and money needed to do so on its own.

There are numerous other advantages to mergers, too. Merging may allow a business to better serve its customers, such as when a bank merges with an investment firm. Combining businesses can also lead to the acquisition of key talent. Additionally, a merger might not only improve a business’s financial outlook, but provide it with the opportunity to engage in research and development in a more cost-effective manner than heavily investing in it on its own.

Mergers can benefit large and small companies alike. Smaller companies that are merging into larger ones can secure important resources to further its interests, while larger companies can gain access to new markets and products. Also, two companies of similar size can merge to give it a bigger market share and compete better. If these benefits sound appealing, then it may be time to sit down with an attorney who can walk through the steps necessary to pursue a successful merger.