Companies in Fort Lauderdale, and throughout the U.S., may occasionally purchase other companies, often resulting in a merger of the two businesses, their assets, resources and employees. There are a number of reasons for buying a company, such as to expand into other fields or to put a competitor out of business.
Continuing with its current trend, the bio-medical company, Stryker Corporation is reportedly planning on acquiring a new business. According to reports, a deal is close between Stryker and Mako Surgical Corporation, a smaller medical-device maker. If approved by Mako’s shareholders, Stryker will purchase Mako for $1.65 billion, an amount 86 percent greater than recent stock prices. There were no specifics released regarding the structuring of the merger. Stryker could simply absorb the company and its employees as a new division within Stryker itself, or could completely take over, which would likely involve a large numbers of layoffs.
While Mako will obviously benefit from the purchase, having struggled to turn a profit since it was started in 2004, Stryker also stands to gain from the acquisition. This purchase will provide Stryker the opportunity to delve into robotic-assisted surgery.
There are a number of legalities involved in business mergers and acquisitions. Businesses and companies of all sizes can benefit from obtaining legal representation in order to help with these, and other types of complex business transactions and issues. An attorney can help to ensure you understand and meet your legal obligations. A lawyer can address your concerns, as well as answer any other questions that may arise.
Source: Sun Sentinel, “Davie-based Mako Surgical to be sold for $1.65 billion”, Doreen Hemlock, Sep. 25, 2013