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A company’s long-term success often depends on consistent growth and profitability increases throughout the year. While there may be many strategies for growing businesses, various companies choose business acquisition as their primary approach for their market increase. However, acquiring a business and integrating it with another can be complicated and come with many challenges.
A business lawyer plays a vital role in a successful business acquisition. Cardon Law has years of experience working with organizations to help them buy businesses. With our help, you can feel confident in their representation and documentation. Contact Jeffrey Cardon for more information on how he can assist your business.
What Is a Business Acquisition?
A business acquisition is where an individual or company buys a majority of an organization’s stocks and, in turn, purchases the organization. A business owner must buy more than 50% of a company’s shares to take control of the organization. After the transaction is complete, the individual will have “acquired” the company and can make decisions as well as implement changes without an obligation to report to the company’s shareholders.
Why Are Companies Interested in Acquiring Other Businesses?
With significant benefits that help increase a business’s size and profitability, there are many reasons why an individual or group would want to purchase another company. Consider the following reasons why a company may be interested in acquiring another business:
Foreign Market
A popular way many companies expand their business is by introducing their company internationally. By acquiring a business in another country, a business can easily breach the country’s market. The international business also has established connections in the country and the area, so the transition process is smoother.
Intellectual Property and Staff
In most cases, a business will absorb the staff and intellectual property of the acquired company. This is beneficial for both the acquiring company and the staff members who will continue the job they are familiar with and qualified to perform.
Expanding Services and Products
Another important reason a company may wish to expand itself with a business acquisition is if they are interested in growing the services and products they offer. Instead of hiring new employees, developing the service, and spending time understanding the logistics of the service, they can simply buy a company that already has the experience and the tools to provide that service.
Overcoming Competition
Organic growth and other strategies to expand businesses take time and significant resources. Acquisitions speed up the process and reduce costs by eliminating duplicate departments and absorbing their services and staff. A company can also gain existing customers and branding that allow them to increase revenue at a fast rate.
A business acquisition has many benefits for businesses and can significantly impact how a company grows. However, there are often legal issues and complications that a lawyer must address for the success of the acquisition and business. With a Utah sales and acquisitions lawyer, you can have the guidance you need for a smooth transition and acquisition process.
Speak With an Experienced Sales & Acquisitions Lawyer in Pleasant Grove, Utah, Today
Acquiring another business has many benefits, but the process can feel overwhelming and complicated without the help of a professional attorney. When you work with Jeffrey Cardon at Cardon Law, you will have the resources and advice from an experienced and dependable legal representative. Jeffrey Cardon has firsthand entrepreneur experience and over 15 years of representing business owners, investors, executives, and more. You can count on us to represent you and your business in legal business matters.
Talk with our team and find out how we can help you grow your business by calling (801) 225-6700 or filling out our contact form.