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New Jersey township proposes emergency services merger

On Behalf of | Dec 5, 2013 | Closely Held Businesses |

The Bedminster Township Committee in New Jersey hopes to expand long-term profitability by merging three of its emergency service units. If the proposal comes to pass, a medical response team and two fire companies will operate as one entity housed at a single location.

Business organizations have historically used mergers as a way to improve operations and profitability by creating a single business entity. The committee has proposed the merger with similar intentions and it is currently under review.

A group appointed by the Bedminster Township Committee developed the recommendation in order to increase the efficiency of responses and curb the costs of operating the emergency services. Because the services are being run by volunteers, the township leaders also hope to improve availability of emergency first responders.

An additional advantage of unifying business operations within this industry is the creation of a new revenue source with fee-based responses to emergency service calls and penalties for false alarm calls. Historically, only the first aid squad generated income by assessing fees on weekday ambulance services.

Mergers, fee-based services and the sale of public facilities should be closely monitored in order to ensure maximum success and profitability. As with any business sale or merger, the proposal should be reviewed to ensure that it protects the interests of the three companies involved. As a best practice, a business plan should be developed prior to the establishment of the newly consolidated business entity. With the help of an attorney experienced in business mergers, businesses can confidently enter into a new partnership.

Source: The Bernardsville News, “Emergency service merger proposed in Bedminster Township,” W. Jacob Perry, Nov. 22, 2013