5 Things You Need to Know Before Merging Your Business

Merging Your Business

~by Lizzie Weakley~

Mergers and acquisitions can give companies a fast way to expand product lines and enter new markets. Still, merging with another company introduces many variables, some of them unknown, into your business model. A well-planned merger has no guarantee for success, and a hasty merger can easily ruin your business and credibility. Spend some time learning about the following five things before merging your company with another.

1. Make a good case

Even if you don’t answer to anyone, you owe yourself a thorough review of any merger proposal. Begin by examining your motivation for merging with another company. Also, conduct a thorough accounting review of both companies to ensure that you have accurate numbers to work with. Even if you have only a limited time to complete a merger, expend the necessary time and effort to make sure that you base your decision on accurate information.

2. Get legal advice

You already know the complex laws and regulations that apply to your business. Additional rules might apply to you when you merge with another company. Before you put your company at risk, get legal advice. Firms such as Carter West know how to organize and manage the legal transactions, including mergers. With the right advice, you’ll know exactly what you need to do to negotiate and structure a merger.

3. The worst might happen

Consider your risks if your proposed merger fails. If you’re betting on a merger to save your company, you could lose it if another firm withdraws from the deal. As you meet with your legal counsel, insist on creating an exit plan that will help you stay viable as the deal unwinds.

4. Inform your employees

You might fear an employee exodus if you tell your employees about your merger proposal. If you don’t stay transparent, however, you risk an employee backlash as your fearful team members feel betrayed. You’ll have a much better experience if you keep your staff informed about every merger detail, even if it means telling them that some employees will not be needed for the new company.

5. Question everything

You need to have complete and accurate information about the business with which you propose to merge. Question all the numbers the other company provides you and don’t be afraid to question any apparent inconsistencies. Similarly, make sure all the information you provide another firm is complete and accurate.

Learn the above five things business owners should know before merging with another company to improve your chance of success and minimize your risk in case something goes wrong. Proceed with knowledge and caution and your merger could be the beginning of a fantastic new chapter in your business career.

Meet the Author: Lizzie Weakley

Lizzie is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky, Snowball.


All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips


Career Building

Family Businesses


Starting Your Own Business

Work-Life Balance


Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

Remember These Expert Tips to Prepare Your Estate

Remember These Expert Tips to Prepare Your Estate

Keep in mind that making estate plans can go a long way towards helping you safeguard your hard-earned money or even a business that you may have. This includes the investment that you’ve spent on ensuring that your home is comfortable and valuable. One of these is safeguarding your home from the likelihood of having flood problems. This is an important detail, especially given the fact that more than 14.6 million homes across America are at a high risk of some kind of flooding problem, according to iProperty Management.

How Entrepreneurs Can Work Through Periods of Stress

How Entrepreneurs Can Work Through Periods of Stress

Entrepreneurship can be an exhilarating journey, but it often comes with its fair share of stress and challenges. The pressure of running a business can sometimes feel overwhelming, and finding effective ways to navigate through periods of stress is crucial for...

Why Entrepreneurs Get Health Goals Wrong

Why Entrepreneurs Get Health Goals Wrong

The life of an entrepreneur is often glamorized, but behind the success stories and Instagrammable moments, there's a grueling reality that can have significant impacts on one's health. Business leaders face unique challenges in balancing work and well-being. We delve...