Two New York accounting practices recently merged in the New Year. The new combined firm will continue under of the name of one of two merging firms and will continue to operate in its three current locations (which are existing locations for the two firms). One of the firms has five partners and fourteen staff members, while the other combining firm has two partners and four staff members. The merger was scheduled to conclude with the New Year.
Deciding to merge a business, or acquire a new business, can be a big step for any company. It is important that the process is carefully understood and that a knowledgeable approach is employed as the company, or companies, works through the process beginning with due diligence through to the closing of the transaction. There may be different types of mergers or acquisition scenarios that require different legal and tax considerations. Whether the transaction is the sale of assets and stock, a complex merger, small business merger or leveraged buyout, it is important to carefully understand every phase of the complex business transaction.
Depending on the circumstances, the merger process may involve a variety of steps, including due diligence; the drafting and completion of transaction documents; the issuance of stock; and the closing, as well as others. Each consideration is important and may also have significant tax and liability implications that must be properly considered and resolved according to what is best for the company.
A merger or acquisition may also be an excellent opportunity for business growth. Because of this, it is important to also consider the company's business goals during the different phases of the process to ensure the transaction meets with the current and future success of the company or companies.
Source: Accounting Today, "Two New York Firms Merge," Tamika Cody, Dec. 29, 2014