The Basics of Merging a Business

Merging a business with another business can be profitable but it can also be dangerous. If the merger is not done properly, it can spell disaster for both companies. Following are some tips that one will want to keep in mind before, during and after the merger. Getting Legal Help Business lawyers Chester county that are considering a merger should hire business lawyers as soon as possible. Good business lawyers will ensure that the merger is not breaking anti-trust laws and/or any other Federal, state or local laws. Legal assistance at the onset can spare a well meaning business owner the pain of having to amend a contract or even undo the merger.

Considering Operational Details It is important for both businesses to determine just how the new company will operate before completing the merger. This includes making a plan outlining who needs to be hired and/or let go, determining who will be responsible for what aspects of business operation, making a marketing plan for the new company and more. If both businesses cannot come up with a plan to cover important aspects of how the new company should be run, the merger may not in fact be a good idea. Perhaps the most important operational detail to be considered is the company vision. Both business owners must be in agreement as to what the target audience is for the new company and how sales goals will be reached.

Pay Attention to Employees It is not easy to keep a potential merger a secret. While a business owner will naturally not want to tell employees every single detail about the potential merger at the onset, he or she should be prepared to address questions and concerns regarding the merger. What is more, employees should hear about the merger from the company owner rather than the local gossip or the town newspaper. Merging with another business has its pros and cons. A merger has the potential to enable two companies to reach a shared goal while cutting back on operational costs. It can also help both companies better compete in the local or national market.

At the same time, a merger can be problematic if not properly planned and/or executed. Getting experienced legal help and making a solid, realistic plan for the new company is imperative to the present and future growth and prosperity of the new business.

Hire Business Lawyers in Chester County, Pennsylvania for Companies Big and Small

Starting one's own business is a fantastic opportunity for growth both personal and professional. Partnering with a preexisting company or merging together can also lead to increased revenue and better overall success. In both cases, small and large companies should consider working with business lawyers Chester County, Pennsylvania area.

A law firm in the county may have more than 30 lawyers and attorneys that work in a variety of practices to accommodate clients in every area of life. Besides business, lawyers may also specialize in trust and estates, family law, land use law, criminal defense, criminal defense with investigations and corporate compliance, personal injuries, and litigation.

There are a number of areas where businesses new and old should have a trained and seasoned lawyer present. When creating a new business, becoming a part of a family business, or making transitions or transactions, these important phases are make-or-break times. When working with a lawyer, the new business owner can discuss their goals and long-term plans to figure out ownership structures, liabilities, finances, taxes, and management levels. Even once a new business owner gets more established, they may still want to check in with their lawyer before any big company changes.

Family businesses can also benefit from a business lawyer in Chester County. Whether a younger family member is taking over from a parent or the business is expanding, the lawyer can help all working family learn more about risk management, governance, hiring new employees, and succession planning so that the company can survive and thrive long into the future.

When a company changes, like through expansion, sometimes the owner needs more money in the form of loans. Rather than navigating this area alone, let a trusted lawyer work with credit unions, banks, finance companies, or savings associations to get the right kind of loan. Real estate loans, letters of credit, construction loans, and lines of credit are all different factors for a business owner to consider as well as private placements, how to document credit, financial transactions, negotiating, and equipment leases. Before a business owner's head starts spinning, let the lawyer guide them through these matters.

If a business acquires another one or merges with a company, this is definitely the time to hire a lawyer. The steps that the newly united company takes to handle reorganization, asset purchases or sales, strategic alliances, stock purchases or sales, or joint ventures can be the difference between success or failure. Lawyers can help clients learn how to figure out regulatory compliance, write a letter of intent, negotiate various terms, and maintain due diligence throughout the process.