Entrepreneurs are often independent of spirit. This may be one of the primary drivers behind your decision to leave standard employment and start a company of your own, so it’s little surprise that many find it difficult to relinquish the reins of control.
In the event of a merger, however, this is necessary. No longer will you be able to steer the ship all by yourself; instead, you’ll have to learn to accept a second hand on the wheel, and a second set of opinions brought to the table.
Despite this, most entrepreneurs learn to adapt, and many merged businesses come to thrive. With double the resources, double the skill, and another able mind to help plot your course, merging your venture with another may be the best decision that you ever make, but it’s not one that should be taken lightly.
If you want everything to go to plan, then here are a few tips that you ought to abide by.
#1: Assess Your Compatibility
The term merger is often used erroneously to describe an acquisition, but this is not what it is. In fact, it is a full consolidation of two previously separate businesses, with the original entities dissolved, and their assets placed into the ownership of a third built from both predecessors. Usually, both owners will retain a position of control, and this means that you must be able to work very closely together. Assuming that you’re considering taking such a step, spend some time making your decision. It’s essential to get to know your future partner inside out, so that you’re confident that you can work with them at their worst as well as their best.
#2: Play by the Book
The creation of a new business is not to be taken lightly, and you should know exactly what you’re agreeing to before you sign on the dotted line. This means performing a thorough investigation into the state of the other company, ruling out any hidden pitfalls that might negatively affect your commercial performance. Don’t be embarrassed to ask for a detailed history of the business, financial accounts, details of any debts or borrowings attached to it, information on property leases, and so on. If you’re assuming joint control of a venture, then you have a right to know what burdens you’re shouldering.
#3: Seek Legal Advice
Once your companies have legally merged, they will become one entity, and to ensure the validity of this arrangement, it’s important to seek legal advice from a specialist like Withers Worldwide. They’ll be able to properly advise you, ensuring that you don’t sign any contracts or agree to any terms that are overly disadvantageous to you, as well as securing your legal position and ownership of your new venture. Never be tempted to rely on trust alone; people and circumstances can surprise you, and if things go wrong, the law will be your best defence against injustice.