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.
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.