Serving Clients in Fairfield, Hartford, Litchfield and New Haven Counties

Getting Prepared for a Successful Acquisition

When Connecticut companies think about how to grow and maximize profits, one of the most common and advantageous ways may be through mergers and acquisitions. By buying other businesses, a company can expand its market and intellectual property in order to enhance its value and profit-making opportunities. When going through a merger, business owners or executives may have to think through and negotiate extensive changes in order to integrate another business in a successful manner. Bringing two companies together successfully can help to eliminate redundancy, and it can be important to avoid bureaucracy and work for full integration as quickly as possible.

Mergers and acquisitions involve several steps that lead to a successful transaction. The first stage of a merger is due diligence; during this time, a business investigates in order to determine a potential target’s value. This can include evaluating their technology, assets and intellectual property. By conducting a thorough due diligence review, companies can help to avoid making a bad deal. After an offer has been made, the next stage involves coming to an agreement. The agreement can go far beyond the sale price of a business to management and personnel decisions.

Of course, coming to the agreement is only part of the plan; the next step is implementation of the integration process. This can include changes in management structure as well as intensive software integration processes. However, a successful integration can help businesses to achieve their goals of stronger profits and maximized value.

When considering a merger or acquisition, businesses have much to consider in order to ensure they are making the right choice for future success. A business law attorney may provide advice and counsel throughout the stages of the process of buying a business, including conducting a thorough due diligence review and negotiating an advantageous agreement for the completed transaction.