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What is a Merger?

A good way to improve your profits is to rethink your business strategy and seriously consider a merger with another company or entrepreneur.


A merger is a growth strategy that allows businesses to join with other businesses with the aim of building a larger organisation for various purposes – the most being to increase turnover. When a merger is hostile (unfriendly) it means one of the companies are being forced to merge this is technically referred to as an acquisition – when one company buys another company.

 
Mergers occur when companies realise the benefits of joining with another company or firm and they then work together to merge (join) the two or more organisations to form one big organisation. The characteristics or mergers also depend on the industry, the type of organisations, management’s objectives and the logistics that need to be processed for a successful merge. 
 
Merging companies requires a lot of research and thought. Factors like ownership, rights and company culture and moral need to be addressed before final agreements are signed. Make sure that you have the proper legal information about the merger and invest in a legal advisor or lawyer to safeguard your interests. 
 
For more info read our article on Types of Mergers.

 

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