Key Questions to Ask Before Joining Another Business
August 30, 2017 | Business Plans, Tax Planning
Things have been going well for your Maine-based small business, and you are considering joining forces with another business for the benefit of both of you. This can be the most efficient way to grow, as long as you plan carefully. Often the reason for failed mergers and acquisitions is management problems, not market conditions.
Here are a few key questions to ask if you are considering a merger:
Do you have compatible goals and ethics?
Be certain there’s a good fit between financial structures, customer bases and corporate cultures.
Have you performed a complete due diligence?
The more you know, the fewer surprises you’ll encounter. Scrutinize financials, check with customers, talk with vendors and interview employees, both former and current.
Who will be in charge?
Don’t automatically get rid of the old guard. The team will need some time when preparing for the difficult task of merging different business cultures. Remember that experience provides stability and helps navigate the challenges.
This is just the beginning. There a lot more to be done before and after a merger or acquisition. Contact Filler & Associates for help deciding the best way to structure a transaction and how to deal with the tax implications.