Before You Merge, Consider These Issues

Source: Practical Accountant

Small firm mergers into larger firms are increasingly attractive. But in contemplating mergers, firms should ask themselves some introspective questions. What is the real reason for the merger? Do you expect life to change after the merger? If not, then maybe you should not merge, for life will surely change if you do.

Some experts believe mergers should not be viewed as ways to solve problems, but as ways to create new possibilities for the firm. To be a desirable merger (acquisition) partner, a firm should solve its problems first. Mergers can solve the problem of succession.

One of the best strategies to make firms attractive to a merger partner is to develop (editor’s note: and dominate if possible) one or more strong niches.

Increasingly in today’s environment, firms seek to improve employee recruiting and retention through merger.

For the complete article, see Practical Accountant, March 2005, which can be found at

http://www.webcpa.com/article.cfm?articleid=11012&;pg=pracacc.