You probably know how difficult it is to operate a business organization successfully. You may come to the conclusion that your establishment cannot grow beyond a certain point. Your commercial activities remain stagnant at this phrase. Like all entrepreneurs, you feel entering into a merger with a similar concern is your best option. It can open up new opportunities for trading partners and you. There be an infusion of cash into the business which will eventually emerge from the venture. This can result in the development of new products which can increase in the existing client base. In many cases, it also results in the exploitation of previously unknown markets.
Arnon Dror LinkedIn What do entrepreneurs need to consider when entering into mergers?
Arnon Dror is a prominent international financial professional. He has more than 20 years of valuable experience in the world of business. During his illustrious career, he has held important posts in a number of transactional companies. The most important being the office of Vice-President (Finance) in US Channel Group. Entrepreneurs who want to know more can browse through Arnon Dror LinkedIn on the internet. They come to know the many of people who know him regard him as a result-oriented person with an impressive track record. He specializes in many diverse areas. These include strategic planning, ERP integration, internal control, cash flow management, supply chain optimization, and corporate mergers.
Tips for mergers
The following are some simple tips to follow for business mergers-
- Mutual trust among the participants
Entrepreneurs generally enter into mergers with their trading partners. Normally, they conduct commercial dealings with such proprietors for years before opting for this course of action. The negotiations they enter into with such owners is to ensure the agreement is advantageous for everyone. Without this mutual trust, the talks are bound to fail. You need to do the same thing when entering into discussion with your potential business partners.
- Due diligence to ensure proper valuation
The parties entering into merger agreements need to conduct a thorough valuation of existing concerns. This involves an in-depth study of the history, mission, vision culture and current financial condition of respective concerns. This ensures the success of the entire exercise. It also ensures the whole integration process takes place without any hassle.
- Legislative issues
Entrepreneurs entering into merger agreements with their trading partners understand laws relating to deals. The contracts they reach with such business owners must be within such guidelines. Otherwise, the resulting concern these businessmen hope to establish would deem to be illegal. If they have doubts in their minds on such issues, these proprietors should seek legal help. Legal experts specializing in the field can suggest the best course of action for them to take.
The Arnon Dror CT team says mergers can work wonders for entrepreneurs. It can make the organization they subsequently create with their trading partners more competitive. The concern can introduce new products from the pooling of talents and exploit unknown markets. However, before taking any decision, they need to consider the above three important factors.