After more than 30 years of operating your own accounting firm, you have finally decided to fully retire and sell your practice. This type of transaction can be extremely stressful and complicated. While there is no one thing you can do to make the process easy, there are things you can do to make it go smoothly.
While mergers and acquisitions may seem like common business transactions, they are complicated. In particular, publically traded mergers can be extremely complex business transactions. Depending on the specific merger, businesses may be subject to business regulations and government approvals. Despite the particular regulations, mergers can be extremely important business tools that help New Jersey businesses grow.
When people start a business in New Jersey, the hope is that it will become successful and grow overtime. In some cases, this growth is slow and hard fought. Other times, growth is quick and immense. In either case, this growth provides New Jersey businesses with the chance to increase profits and reach more people. A merger is a way for two or more businesses to grow by combining forces. In cases of mergers, businesses are creating a new entity designed to be bigger, stronger and better than the previous entities were alone.
Five months ago, US Airways and American Airlines announced plans to merge into a single airline. Mergers allow two or more business entities to combine into a single company. This is often a good way for New Jersey companies to grow or to save themselves from financial trouble -- by acquiring access to a healthier company's assets. Mergers tend to be complex business transactions that require skillful negotiation, and expert execution to be successful.
Sometimes complex business transactions take jobs from New Jersey, and other times, the state benefits. Recently, Valeant Pharmaceuticals International announced that it will be moving ophthalmology company Bausch + Lomb's headquarters from Rochester, New York to New Jersey once Valeant's acquisition of the company is complete.
Businesses big and small are almost always looking for new ways to grow into successful companies. While many small businesses may think that mergers and acquisitions are only for large corporations, they should know that this is not always the case. Small business mergers are an important way that many companies choose to grown and fulfill their business goals.
As reported in a previous blog post, New Jersey's Knight Capital Group has struggled financially since a computer error cost the company $460 million. In December, it was rumored that Knight was looking to be acquired by a larger more financially stable company following a short term deal with other investment companies that helped to keep the firm afloat.
In order to grow, New Jersey businesses need to expand their customer base. The more people purchasing goods or using a service, the more money a company can make. Sometimes in order to expand, the company needs to enter into a new market, which can be difficult. Alternatively, a company can acquire an existing business in its desired new market. By acquiring a new business, the company can take advantage of connections that the previous business already made and will have an existing customer base. An acquisition can make the process of moving into a new market much easier.
Rumors have been swirling that snack food giant PepsiCo Inc. is considering a new corporate strategy. New Jersey shareholders may be interested to know that these rumors include a potential merger with Mondelez International.
Buying a company is one of the most complex businesses agreements that a business can enter into. Mergers and acquisitions require thoughtful planning, expert execution and careful oversight in order to be successful.