Tax Blog

Merger Ahead? Why One Makes Sense

Lately, there has been a lot of mergers and acquisitions going on between mid-market and even large market companies. Why should a business owner merger their business or acquire another? Acquisitions generally happen for a purpose and those reasons include the following or some combination thereof:

  1. To grow sales and profits

  2. To eliminate competitio

  3. To acquire customers

  4. To acquire staff

  5. To acquire rights to sell products not currently handled

  6. To spread overhead and support staff costs over a broader base

  7. To afford additional corporate support services

  8. To add best practices by adopting superior processes and systems used in the acquired firm

  9. To use acquisition as a bridge to future acquisitions

  10. To acquire a business name that has a good reputation and following

  11. To add existing locations/facilities through the acquired firm

  12. To immediately increase revenue levels

The Center routinely advises on these matters and performs business valuations and succession plans as well.

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