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A Look at Mergers and Acquisitions

Last updated 2 years ago

In the world of business, thousands of deals are conceived, negotiated, and agreed upon every year. These deals may include large amounts of trading services, or mergers and acquisitions. Though mergers and acquisitions happen all the time in business, they are anything but easy. Here’s a brief overview of how they work:

  • Structuring a Deal

Once the idea of a merger or acquisition is proposed and agreed upon by both companies, representatives from both sides will work out a deal. During negotiations, both sides will make decisions regarding personnel and how much money will change hands, as well as other important business matters.

  • Due Diligence

Before agreeing to something as major as a merger or acquisition, both sides will want to make sure that the other is a suitable business partner. In this context, the term “due diligence” refers to an investigation of a business’s or individual’s past that is meant to expose corruption or fraud.    

  • Integration Logistics

Once the merger or acquisition deal has been finalized, both sides still face the challenges that come with the integration itself. From the hiring and firing of personnel to marketing, both companies must carefully handle the logistics in order to prevent a chaotic transition.

  • Tax Consequences

Whenever there’s a merger or acquisition, millions of dollars are involved. After all’s said and done, both companies will have to worry about the tax implications of the deal. To make sure that everything goes smoothly, it’s often a good idea to bring in a Certified Public Accountant (CPA) and a business consulting firm.

If your business is planning a merger or acquisition, contact Restivo Monacelli LLP. Our CPAs and business advisors can help you with every aspect of your business dealings—from the initial pitch to the final negotiations. Call us today at (401) 273-7600 to learn more about our services.

 

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