There are a variety of benefits associated with acquiring another business. Any company considering an acquisition should understand the benefits, process and how business law legal resources can help with a successful acquisition process.
An acquisition is unlike a merger because an acquisition refers to acquiring another business whereas a merger refers to merging two businesses. An acquisition can be the opportunity for the business acquiring another established company to grow and expand and enjoy greater success. Some acquisitions are for companies that provide similar goods or services as the acquiring company while others may allow the acquiring business to expand its product line or services. There are also advantages and disadvantages business owners considering an acquisition should be familiar with.
During the acquisition process, of course, the acquiring company buys the company that is being acquired. During the merger process, alternatively, two companies become one company. An acquisition is a takeover of the company that is being acquired. The acquiring company will have complete control over the acquired company following a completed acquisition. Mergers typically involve a structure that provides leadership of both companies with some decision-making authority or control following the merger.
Acquiring a business that helps the original company expand its customer base and the goods and services it provides can be a positive move for many businesses looking for options to enjoy a broader market presence. As a result, any company considering an acquisition should be familiar with the potential benefits of an acquisition and the legal process of acquiring another company generally.
