From agricultural businesses to the service industry, the United States is home to a multitude of different types of companies. Despite differences in specific business goals, the common goal of all businesses is find success. Sometimes, in an attempt to improve the strength and success of a business, Louisiana business leaders will pursue a merger or acquisition.
As Louisiana business owners can attest, expansion by acquiring a new business can be an excellent way to grow your company. Regardless of the structure of the deal, it is vital for the purchasing business to do its due diligence to ensure that the purchase will be profitable and as seamless as possible. Due diligence is also essential to avoid costly business disputes and litigation.
Oftentimes mergers and acquisitions can be smooth processes, provided that the management of both companies share similar views and their employees and stock-holders have been adequately involved in the process. One should not underestimate the potential problems that can be caused by a dissatisfied group of shareholders who could bring merger-halting business litigation. The proposed merger between Baton Rouge's The Shaw Group and CB&I may be facing this exact problem.
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.
Two Louisiana radio networks centered on farming news are set to join their efforts together. The Louisiana Farm Bureau Radio Network is set to merge with the Louisiana Radio Network's agricultural news division, creating a combined force of 42 affiliates.
Mergers and acquisitions are complex business transactions that require foresight, careful planning and a bit of luck. There is wide range of things to consider such as financial ramifications, the meshing of corporate cultures and even intellectual property concerns or real estate issues. With so many variables at play, it's a very real possibility that potential mergers can fall though and a business dispute can emerge. During a merger or acquisition, when the stakes are high, the results of even a single quarterly report can spell doom for the transaction. Such is the case with the merger between Pep Boys and Gores Group.