Last week's blog discussed a local business merger which may have raised important questions concerning mergers and acquisitions and the process of buying a company. Companies are able to enjoy growth opportunities through mergers and acquisitions. For a merger or acquisition to be a positive growth opportunity for any company, however, the proper due diligence and research must be conducted. In addition, important legal ramifications and possible liabilities must also be carefully considered. The first step in acquiring or merging with a business is to determine which business is the best business for you and your company.
There have been a number of mergers and acquisitions announced recently in the technology field. A combined company valued at $40 billion is expected when chip maker NXP Semiconductors NV buys smaller chip maker Freescale Semiconductor Ltd. Freescale's value has been placed at $11.8 billion. The two companies plan to merge operations. The friendly acquisition deal was recently announced by the two companies.
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.
New York entrepreneurs who are interested in conducting a merger or acquisition may be interested in reviewing the basics of due diligence. Due diligence is the process of understanding the important aspects of a commercial venture, giving a potential buyer or investor a way to vet the business in question. This process can be completed by following a number of simple steps.