There are plenty of large mergers and acquisitions that we all hear about in the news — but M&A deals with small- and medium-sized businesses are actually even more common, even if they don’t make headlines as often.
This is partly because there are many reasons the owner of a small- or medium-sized business may need or want to consider acquiring another business or selling their own. In today’s blog, we’re going to cover nine of these reasons. If you own a business in Chicago and are interested in pursuing an M&A deal or deciding if an offer you received is good, contact us.
Our corporate law firm in Chicago is experienced in business law, including M&A Law. Work with our mergers and acquisitions lawyer today to determine how to proceed with your business.
We see a company merger or business acquisition often take place when a business owner retires. As the owner transitions into retirement, the owner may not want to leave one person in charge of the company, but rather chooses to sell the company to another, well-established company. Other business owners choose to sell the company to have more funds to access during retirement. If you are in the process of retiring and are interested in working out an M&A deal with another company or you wish to acquire another company whose owner is retiring, reach out to our mergers and acquisitions lawyer for help.
Though our modern technology certainly allows for more communication and capabilities than ever before, relocating can put tremendous strain on a business and a business owner. A business owner’s life is full of responsibilities, meetings, and in-person obligations — and this can be difficult if the owner moves out of the country or even out of the state. This could be an opportune time to start researching types of mergers and acquisitions to see which would be best.
As we age, our health can deteriorate, leaving us with less time and fewer capabilities to manage a business. On top of this, debilitating medical conditions can occur to us at any time — no matter how old we are.
For business owners who are facing tremendous health or medical concerns, it can sometimes be a wise move — for both them and the business — to work with a mergers and acquisitions lawyer.
Life is unpredictable, as you very well know. Unforeseen financial troubles can pop up at any time, and sometimes the results can be devastating. While you may not want to pursue a merger and acquisition for this reason, a large benefit of mergers can be the positive change in your assets. Your merger and acquisition can help you get back on your feet financially.
Increased Business Competition
The current market is dense, with significant competition in almost every industry. As businesses strive to meet customer’s needs, they can be surprised or even hindered by business competition that is taking over the market.
In this situation, merging with or acquiring another business can be instrumental in your success. You’ll be able to access a larger market share and reach more of your customer base — without worrying as much about the looming competition.
Diversifying Products Or Services
In today’s world, our businesses have to be more and more streamlined for customer satisfaction. So, if customers can get all or more of the products they want in one place, then they will. By diversifying your product base with a merger and acquisition, you may be more likely to retain customers and drive customer satisfaction.
Business owners are also interested in company acquisitions when the services of Company B will advance or complement the services offered by Company A, such as a company that can strengthen another’s technology, payments, or other important aspect.
By diversifying products or services with a company merger or business acquisition, business owners may obtain an unparalleled competitive edge.
Desire For Expansion
As a company desires to expand to other locations, it can be hard because the market is already dense in the new location. Growing a customer base in a place with a well-established business in your industry can be hard — but it won’t be nearly as challenging if you have the right merger and acquisition strategy.
Rather than starting over with generating attention and customers, you can tap into the market already there and quickly access a wide customer base.
Desire For Greater Management & Employee Infrastructure
This is more often the reason a small business owner may have for merging with a larger company. One benefit of a merger is accessing the benefits many large companies have, such as superior management and employee infrastructure.
By merging for this reason, you can enhance the success of your company and protect your assets well into the future. Doing so also allows your employees greater opportunities to succeed.
Belief That The Business Has Reached Its Potential
For many business owners, their business is their baby, so to speak. Because of this, some business owners will seek a merger and acquisition once they feel their business has reached its potential. This can be an exciting time for the business owner who merges or sells the business — with the prospect of travel, starting a new business, or founding a nonprofit on the horizon.
Work With Bleakley Law LLC Today
Does one of these reasons apply to you and your current business situation and prospects? Reach out to us today to speak and work with a mergers and acquisitions lawyer in Chicago.
Bleakley Law LLC was founded by Elizabeth Bleakley, who has started several businesses of her own. Because of this distinct background, she is capable of meeting clients where they are and understanding the unique risks and rewards associated with mergers and acquisitions. Get answers to more questions about M&A law and reach out to us today to start this next stage of your business.