10 Points to Take into Account before Considering a Merger in Spain

10 Points to Take into Account before Considering a Merger in Spain

10 Points to Take into Account before Considering a Merger in Spain

A merger presents a company with the fantastic opportunity to team up with the competition to pool resources and control a bigger share of the market. However, there are several issues that smart CEOs should take into account before considering a merger.

1. What is your company’s main reason for the merger? Perhaps you are hoping to be able to offer more products and services, or expand your geographic reach. Maybe saving on overhead expenses appeals to you. Make sure the motives are clear to everyone.

2. Will the company achieve those goals? Do your homework to be sure that you will be able to truly make the most of this merger.

3. Has proper due diligence been carried out? Due diligence is when the potential acquirer evaluates a target company or its assets. The other company will usually exaggerate its own worth, so conducting a thorough investigation is essential.

4. What will the company name and logo be? A fresh new image can increase profits. However, if the parties are not prepared to compromise on key corporate image issues, this could stop the merger before it even gets out the gate.

5. What is the time frame for this merger? Given all the complicated details that need to be hashed out, mergers can take up to 18 months.

6. What expenses will be involved in this merger? Costs also include legal procedures and audits. Outline a proposed budget and confirm it with the law firm involved. They can advise you of hidden costs such as the possibility of overhauling previous signs, logos and websites.

7. Does the staff support this merger? Employees may be concerned about staff cuts or cuts in perks and benefits. If the other company offers a better health care plan to its employees, which plan will be offered post-merger? Personnel will be delighted if their benefits improve.

8. How will personnel be notified of the merger? Be clear and direct with everyone, so that rumours do not start. Your employees will appreciate this.

9. Where will the offices be? If there is a move involved, both time and money are a factor. Keep them in mind.

10. What will the corporate structure be? The board of directors will be affected, and a new president should be considered. Departments and committees must also be reorganized and restructured.

These are just some of the many questions to ask before considering a merger. For further inquiries, leave a comment below or fill out our contact form.

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