Many businesses in Pennsylvania have undergone a merger. A merger involves two businesses joining together to form one large parent company. While mergers can be beneficial, some mergers are regarded as more of a hostile takeover. Here’s what you need to know about business mergers.
What are the different types of mergers?
A merger can take many forms. In a horizontal merger, two competitors join together to create one company. In a vertical merger, a supplier and a customer join together under one umbrella. A market-extension merger involves two businesses that sell a similar product in different markets, while a product-extension merger involves two companies that sell different products in the same market. Finally, a conglomeration involves two businesses that have seemingly nothing in common joining together.
Some mergers are beneficial for both companies. However, sometimes one company will take over another against the company’s wishes. When this type of acquisition occurs, it’s frequently described as a hostile takeover. This often happens when one company buys the majority of another company’s shares, which effectively gives them ownership over that business. To protect their rights, a business owner might wish to hire an attorney experienced in business litigation.
How can an attorney help a business owner?
An attorney might be able to help a business owner with a number of business-related legal disputes. They might be able to guide their client through mergers and assist them in shareholder disputes. They might also help their client avoid liability to protect them from potential lawsuits.
Additionally, an attorney might be able to help a business owner with every step of the process, from forming their own small business to dissolving the business and liquidating their assets. They could also answer their questions and offer legal guidance along the way.