The ever-changing economic tides in the United States can take a toll on a variety of small-scale businesses, even established ones. That was the case of Paramus-based Norton Paint, which was sold to Eagle Paint and Wallpaper from Bergen County.
Created in the 1960s, Norton Paint has already transitioned from being a family-owned business to a small scale business entity in 2003. For the second time, Norton Paint changed owners as a response to the economic crisis. Eagle Paint and Wallpaper, on the other hand, sees the buyout as a good fit because of Norton Paint’s good reputation.
Business mergers can be a messy affair, not just for huge companies but most especially for small and closely held corporations. Culture clashes seem inevitable as new and retained employees may encounter difficulties in working together. Layoffs are always a looming possibility, making it harder for employees to trust the company, resulting in a decline in motivation and productivity. Furthermore, it might take a while for consumers to adjust to the new image of the business.
Fortunately for these New Jersey companies, the merger benefited both of them as they joined forces in a highly competitive environment. The majority of the Norton staff also remained and joined the new business, and both companies were able keep their names, preventing any consumer confusion.
It is during these times that business owners should make sure that they have a well-crafted business plan to protect interests and ensure that all problems are given a solution. This should be created regardless of the size and scale of your business. The business plan should be as thorough as possible in order to cover areas such as taxes, finances, permits, insurance and employees.
Source: NorthJersey.com, “Eagle Paint of Englewood buys Norton Paint in Paramus,” Kathleen Lynn, March 8, 2014