When a Michigan business is considering its options to expand or go public, there are numerous potential methods to move forward that might come to mind. A merger is one. However, it might not serve the business goals to go through a conventional merger. Instead, the corporate strategy might be better-served to consider reverse mergers. Understanding what these are, how they work and the benefits can help to decide if it is the right choice.
What steps are necessary when acquiring another business?
When Michigan businesses set a goal, there are often many steps that must be taken along the way before the final destination can be reached. This is particularly true when a major project is at stake, as there are several things that must be accomplished in order to complete the larger project.
What types of mergers are available to Michigan businesses?
Mergers and acquisitions occur regularly in the course of business in Michigan. These complex business transactions often serve as a way to help two businesses grow in what can sometimes be a cut-throat environment. However, some business owners may not be aware that there are various types of mergers available to businesses in Michigan.
Monetary prowess in business steers mergers and acquisitions
One of the topics that too many people know very little about is business. Unless one owns a business or are a partner in a business, there is a strong likelihood that one does not pay much attention to mergers and acquisitions. With that being said, however, for those of you in Detroit who are interested in business matters, understanding and knowing mergers and acquisitions is important. This is because there may be a time when members of a business want to either combine their business resources and capital with another thriving company, or acquire another business. Mergers and acquisitions exist for big businesses and smaller businesses alike.
Resisting the hostile takeover
Businesses in Michigan face a variety of threats. There are worries about the economy and how it will affect the business, issues with customers, government regulations and more. In some cases, the threat comes from other businesses.
Staples to buy Office Depot
In a recently announced move, reports indicate that the office supplies giant Staples has purchased a rival office supplies giant, Office Depot. This consolidation is taking place a little over a year since Office Depot merged with Office Max in November of 2013. Staples offered a cash and stock deal of $6 billion.
Michigan-based company looking to expand its business in Spain
Business mergers often have to deal with situations where two or more companies come to the understanding that they would be better off as one company. So a merger, in most cases, is where companies decide to merge for the benefit of all. An acquisition, on the other hand, is where one company takes over another company that may be struggling to a degree but that may have intellectual property, key employees, real estate or cash flow that the acquiring company would like. Mergers and acquisitions are very similar to each other from a legal point of view and can often be used interchangeably.
Mergers continue apace, but spinoffs also on the rise
A merger usually occurs when two companies believe they can operate more efficiently and profitably by combining their resources. Mergers often take the form of corporate acquisitions in which one company purchases another company. These acquisitions can take the form of either asset purchase agreements or stock purchase agreements. In an acquisition the purchasing company typically retains its corporate name and identity, while the acquired company no longer exists as a separate entity.
What does a certificate of merger include in Michigan?
After two domestic businesses decide that they want to merge in Michigan, the process has to be approved. Once the approval officially goes through, a certificate than has to be created, which is known as a certificate of merger. Knowing what this will include is important to business owners on both sides of the equation.
2 Michigan banks finish a merger
On the Aug. 8, 2014, two banks in Michigan made an announcement to tell the public that they had officially completed merging to bring their services together. The banks involved were First Federal of Northern Michigan Bancorp, Inc. and Alpena Banking Corporation.
