Baton Rouge, Louisiana, is home to countless businesses. All of these companies want to prosper and achieve success. Sometimes, in an attempt to strengthen its company, a business will merge with or acquire another business. Mergers and acquisitions are very common business strategies, particularly when one or both companies are having financial difficulties.
Some of the best known businesses in America started off as family owned businesses. So, what makes the difference between those that continue and those that close with the passing of the founder? Ensuring that a family business transitions properly from one generation to another takes sound business planning. Efficient planning for the future is essential to preserving a company.
When a person or group of individuals starts a business in Louisiana, the first of its business goals is always to establish the company in the local market. Soon, if the business finds success, in many cases the leaders may turn their attention to expanding operations. Initially, this may mean opening additional locations; at some point, however, those in power may look into the option of acquiring other companies to enhance the original business. Although this can sometimes lead to business litigation, if proper planning is involved, the interested parties may be able to reap great rewards.
Years after the Deepwater Horizon oil spill grabbed headlines, many are still being impacted by the event in the coastal regions of Louisiana.
When two companies share similar outlooks in their approach to running a business, the mergers and acquisitions process can become easier. Since one of the most fundamental issues in a merger is attempting to mesh the two sets of cultures and employees in a way that is conducive to success, when the two already share similar outlooks on their business this process can become more intuitive and be more quickly resolved. Instead of needing extensive business litigation to work through issues, these problems can sometimes be sidestepped altogether.
In an update to a story previously covered in this blog, Louisiana residents may be interested to learn that the merger between American Airlines and US Airways has taken a step forward. The two businesses have formally started engaging in talks, wherein the two organizations will work with one another to determine whether or not a merger is in their best interests. If these talks eventually lead to the merger of the two businesses, the result would be the creation of one of the largest airline providers in the world.
Louisianans who know how complex the mergers and acquisitions process is will not be surprised to hear that even Wall Street titans like Goldman Sachs run into complications. The firm has seen several setbacks recently, all tied to business litigation struggles with a pension fund from Louisiana.