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Tag Archive for: Mergers

A Guide to Thriving: 5 Expert Tips for Surviving a Company Merger or Acquisition

December 22, 2019/in Business Law

You’ve seen the writing on the walls for weeks.

People on the management team disappear into mysterious closed-door meetings for hours at a time. You’ve been asked to compile data about company costs and employee usage rates. There’s been a general sense of unease at the office.

And during today’s all-staff meeting, the dreaded words were finally uttered: company merger 

There’s nothing more stressful than dealing with an acquisition or merger. You’re in for some interesting changes, but don’t worry. We’re here to help you navigate the latest changes in your company so you can keep your career intact.

Navigating the Company Merger: Our 5 Essential Tips 

It can be difficult to stay cool when you’re in the middle of a company merger. There are so many questions on your mind.

Will I still have a job in a few weeks? What’s going to happen to my colleagues? Am I going to have to take a pay cut if I want to stay on?

Unfortunately, we can’t answer those questions for you. We can, however, give you some tips that can help you manage whatever comes your way. 

When you learn that a company merger can’t be avoided, make sure you remember these crucial tips. 

1. Prepare for the Worst

People can underestimate just how jarring mergers and acquisitions can be for everyone involved. Oftentimes, nobody is safe. Everyone from the part-time secretary to C-level employees has uncertain futures at the company.

You could end up staying with the new company and find that you don’t like the new direction. You may find that half of your department got terminated and you need new employees. You could find out that your position has been eliminated. 

Now isn’t the time to panic, it’s the time to prepare. 

As soon as you know the merger is happening, take the time to fully update your resume. If you have any current work you want to add to your portfolio, grab it from company computers now.

You never know what can happen to important files when new people come on board. It’s possible that your access to files could change or that things have been deleted. That’s why it’s important to gather things while there’s still time.

This is also the perfect time to go to networking events and touch base with friends and old business connections. If you end up looking for a job or need to find people to hire, they could come in very handy. 

2. Choose Your Words Wisely 

Mergers are a very sensitive time for companies. Whether you’re an entry-level employee or a VP, it’s important to think about the way you discuss everything that’s going on.

If you’re in management, don’t say anything concrete about the merger until you’re 100% sure about what’s happening.

It’s far too easy for managers to accidentally spread misinformation to their direct reports during this time. Don’t confirm or deny things unless you can say then with absolute certainty. 

People that are feeling negatively about what’s happening should also be careful about who they express their opinions too. You never know who will be listening. A frustrated off the cuff comment could lead to problems for you in the future.

3. Communicate Your Willingness 

Do you love the company you’re currently working for? Are you looking forward to talking to the newest owners about your ideas on how to help improve products or services? Let your eagerness be known! 

Happy and willing to work employees are critical during a merger. They won’t just do the hard work that’s needed at the new company, they can also help create buy-in from employees that may be on the fence about staying at the new company.

Set some time to talk to higherups about how you want to help make the merger go as smoothly as possible. Even if you don’t have a concrete plan, just knowing that you’re offering support can be important for people.

4. Read Paperwork Carefully

This tip goes for the people selling their company, acquiring a new one, or simply going through the merger action because they’re an employee. Whenever there’s a merger happening, pay very close attention to any piece of paper you have to sign. 

Are you accepting a severance package? Severance pay often comes with strings attached.

Accepting the money may mean not working for a competitor, or even speaking negatively about your experience. Make sure you thoroughly comb through the agreement before you sign.

If you’re accepting a position in the newly formed company, read your contract carefully, even if you’re in the exact same role. The new company may handle pay, benefits, or duties carefully. 

This isn’t the time to guess and assume that everything is in order. Don’t be afraid to bring in the help of an attorney if there’s anything you don’t understand or are concerned about.

5. Evaluate Your New Company

So you’ve survived the merger and now you’re working within your new company. You may have kept your job, but the work isn’t over yet.

When you’re dealing with the stress of a merger you’re so concerned about the possibility of losing your job, you don’t take the time to consider if you actually want to keep it.

Now it’s time for you to decide if you want to stay with the new company. You may find that the way things are going aren’t working for you. 

Think about the new company culture and if you’re a good fit. See if you mesh well with new employees and management. Decide if you’re happy with the work you’re assigned and what you’re producing. 

The Expert Help You Need

A company merger can be a stressful time, but that doesn’t mean that it’s an impossible situation to navigate. If you stay in the right frame of mind and handle things as they come, you can easily survive whatever comes your way.

Are you a business owner that’s about to go through their first merger? Are you a concerned employee that wants to learn how to handle an impending merger in the right way?

We’re here to help. Be sure to reach out to us today so we can answer any questions and handle any concerns you may have.

https://debruinlawfirm.com/wp-content/uploads/2019/12/company-merger-1280x640-1.jpg 640 1280 Bryan De Bruin https://debruinlawfirm.com/wp-content/uploads/2025/04/logo.png Bryan De Bruin2019-12-22 21:17:392021-03-09 19:47:29A Guide to Thriving: 5 Expert Tips for Surviving a Company Merger or Acquisition

Your Guide to the Difference Between a Merger and Acquisition

August 8, 2018/in Business Law

People often talk about mergers and acquisitions in the same breath – but they aren’t actually the same thing. Do you know the difference between the two?

Even if you don’t have your own business, it’s valuable to understand these concepts.

If a business you support is involved in a merger or acquisition, you’ll know exactly how this will affect it going forward. And, of course, if you have your own business, you’ll want to know the benefits and drawbacks of merger vs acquisition as you decide on the future.

In this guide, we’ll teach you the difference between merger and acquisition so you can easily make the right business decisions. Whether you’re a consumer or a business owner, keep reading to learn more!

Merger vs. Acquisition: The Basics

Both acquisition and merger have once basic goal: to make a business stronger or more profitable. They help preserve the strength of your business and give it the potential to grow further.

Of course, the business world is complicated, and there can also be underlying, darker motives in these situations too. For example, these business moves might be made to protect the jobs of a board of directors.

However, the basic concept behind mergers and acquisitions is to grow the wealth of the shareholders. This may not always succeed, but it’s generally the goal.

The Difference Between Merger and Acquisition

Let’s take a closer look at how these two business moves are different, and why a company might choose one over the other.

Acquisitions

Most of the time, acquisitions are less complicated than mergers. During an acquisition, one company – the acquiring company – buys a major stake in another company – the acquired company.

The acquired company doesn’t just morph into a branch of the acquiring company, though. It might keep its original name and unique identity, or it might get totally absorbed. This depends on what the acquiring company plans to do with it.

Most of the time, the acquiring company is larger and more powerful, which is why it’s able to acquire other companies. Some people call acquisitions “takeovers” – a more literal term for what actually happens.

However, both of these terms sound a bit negative and imply that the acquired company doesn’t stand to benefit from the situation, or was taken over against its will. This often isn’t the case at all.

Another slightly different situation is the “tender offer.”

In this case, one company does buy a major portion of stock in another company, just as with a takeover.

However, tender offers are usually arranged between the shareholders directly. These moves don’t involve a board of directors, while takeovers usually have to b approved by the board and by management.

Mergers

A merger means that two companies are joining in a partnership to create a new, third business. Most of the time, the two companies are similar in power and size. In the new business, they are equal partners.

A similar situation is a consolidation. This also means that two companies that were once separate join together to do business.

Reasons for Merger vs. Acquisition

Acquisitions usually imply that the two companies aren’t equal since one has the power to “take over” the other.

In mergers, the businesses involved are on a more level playing field.

However, both mergers and acquisitions can be beneficial for all companies involved. It just depends on the situation.

1. Diversification

Two companies might become one if they’re hoping to diversify their investments or products.

For example, they might be wishing to offer more products, or to reduce risk by getting involved in another industry as well as the current one. When a firm acquires a company that does something different than they do, it’s no longer completely dependant on a single industry.

This can also be a way for companies to stay relevant.

If a company in an industry sees that there’s a new, more innovative product on the market than what they offer, they might buy a company offering that product. This keeps them from becoming outdated and overtaken by a newcomer.

2. Foreign Diversification

Businesses might also want to diversify across countries. Mergers and acquisitions with companies in other countries can help reduce risk too.

For example, while one country has a recession, the other country’s economy might boom, so the business that’s in both places will still do well. This also helps reduce foreign exchange risk.

3. Improved Finances

Mergers and acquisitions also help businesses improve their financing.

A large business can often get more financing through capital markets than small businesses can. A merger means that the new, larger business is able to get for potential equity and debt financing.

If a company is financially struggling – maybe going out of business or going bankrupt – they might seek out a larger company for an acquisition. The acquisition can allow the business to keep going while offering a source of financial stability.

4. Tax Incentives

There are a number of tax advantages to these business moves. For instance, if one of the companies involved had net losses, the profits of a company it merged with could offset those losses.

However, this only works well if the new, merged businesses are projected to achieve financial gains in the future.

A more nefarious tax advantage involves business location. Sometimes, a company in a location with a high corporate tax might seek to merge with a company in a place with a low corporate tax. This can allow the new company to save millions – or more – in taxes.

Acquisitions, Mergers, and the Law

The difference between merger and acquisition is significant. These are two very different situations, but many times, businesses have the same reasons for doing each one.

Some of those reasons are straightforward, while others are more complex. But no matter what, it’s important for companies to do everything legally. Otherwise, they’ll be set up for serious trouble in the future.

Do you need merger and acquisition attorneys to make sure everything’s done right? Contact us today to schedule a meeting with an attorney who can help.

https://debruinlawfirm.com/wp-content/uploads/2019/11/Image_1-1-copy-3.jpeg 1025 1538 Bryan De Bruin https://debruinlawfirm.com/wp-content/uploads/2025/04/logo.png Bryan De Bruin2018-08-08 17:08:082021-03-09 19:43:27Your Guide to the Difference Between a Merger and Acquisition

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