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If you own or operate a small to mid-sized business, you’ve spent a great deal of time and effort building it from the ground up. In time, you may be ready to take the next step, whether that’s adding to your current operation, or selling your business and starting a new chapter in your life.

You may be considering a merger of your business or acquiring a new one to add to your current holdings. Like most business transactions, a merger or acquisition requires dedicating your time, and enlisting the help of professionals, including accountants, lawyers, and an expert in business sales.

What is a merger?

A merger is the practice of combining two separate businesses into one main entity. A true merger can be uncommon due to the fact that the owners of each business are merely combining their efforts and resources – and not truly expanding their holdings.

However, a merger can also benefit the parties involved because they are able to combine resources such as employees with industry experience; office equipment like computers and laptops; and a deep pool of business experience.

What is an acquisition?

Simply put, an acquisition is acquiring a company and then absorbing its resources and holdings into the acquiring company. In some cases, the acquired company may be completely liquidated. You can think of it as purchasing another business or franchise.

What You Need

Whether you are considering a merger or acquisition, you’ll need to gather information that you can put into a sales agreement. It’s a good idea to work with your accountant to ensure the data that you’re gathering is current and accurate.

Here is a partial list of what you will need to have:

• A list of all inventory in the sale along with names of the businesses and owners.

• A detailed plan that determines how the business will be run prior to close, and the level of access each company will have to financial information.

• Note all adjustments, broker fees, and any other aspects relevant to the terms of agreement.

• Assets and liabilities

Another part of this process is the transfer of ownership from one party to another. It has to spell out what the new ownership will look like. This phase will definitely require the services of a business attorney.

Don’t forget that once the merger or acquisition is complete, you must also register these changes with the state where your business is located. Check with the laws of your state to ensure that everything is properly submitted.

Depending on the action you’re taking, you may need to open new bank accounts and acquire the right state and federal tax ideas. In some cases you may also have to re-apply for certain licenses and permits. Finally, you have to properly close your old business.

Work With Murphy

Murphy Business provides merger and acquisition services that are handled by seasoned experts who will be there every step of the way.

When you work with one of our experts, you will receive constant feedback and guidance throughout the merger or acquisition process. 

If you’re looking for new opportunities, Murphy Business can also help you purchase a new business if you’re looking for a challenge or investment opportunity.

Contact Murphy Business Sales today, we look forward to working with you.