Steps to Having a Successful Merge with Another Business

Written By Steps To Faculty Published April 19th, 2010

When the winds of change are too strong, it is better to be like the tree with a soft and flexible trunk and bend, rather than be rigid and get either blown away or broken. It is fortunate business units who get an offer to merge with bigger units. The market is always full of lead players who are eyeing upcoming units that show a spark and once they are convinced of the potential of the young enterprise, they come up with a business merger proposal.

Step 1 Look at the big picture

As an entrepreneur, you can become overly ambitious and fail to see the big advantage of a merger with a big player. If the offer of the business merger is sound and does not demand compromise in terms of profit sharing, or getting due price for one’s establishment, it only makes good sense to take the offer and merge.

Step 2 Check out the legalities

A company merger is worked out based upon mutually agreeable terms. The parent firm that proposes the business merger keeps in mind your brilliant work and ideas and compensates the efforts of the innovative player. Be sure to highlight the value that you bring to the table. This move can make the difference between a million dollar offer or not.

Step 3 Consider the reality

Microsoft, Yahoo, Google, etc. have a history of company mergers and have given the likes of YouTube, Hotmail and a host of others the success and dignity they may not have achieved had they not merged with a big name. The days of a one-man show are gone and the world is growing through expansion, diversification and smart moves like a company merger and acquiring practices. Be aware that you can grow your business faster through strategic alliances and mergers than if you fight the competition alone. Bigger companies have more financing options than smaller ones and are able to gain more market share.

Choose wisely and read the fine print before signing any legal documents. You don’t want a surprise later.

Roger Due

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