Floridian business owners like you may come to a point in which your business may join together with another. But is this joint venture a merger, or is it an acquisition? What are the differences between the two?
Wall Street Mojo takes a look at seven differences between business mergers and acquisitions, which only share base similarities. The primary difference is that merging is a situation in which two businesses become one. They share goals, responsibilities, and adapt to each other in order to move forward with a new goal or vision. In an acquisition, two companies are still coming together. However, one is essentially “consuming” or “acquiring” the other. The company that does the acquiring will impose its own staff, rules, regulations, goals, and so on onto the company that is being absorbed.
Acquisitions can sometimes be seen as hostile or unwanted. Generally speaking, there is a big discrepancy in power balance as well, since the larger company always does the acquiring and they then impose things onto the smaller company. Merges are considered an equal partnership of sorts, as if the two businesses are entering a marriage. Terms are equal, disagreements can be met on equal footing, and every party has a say even as the company moves forward.
If you have any further questions about the differences between these two processes, you may want to speak to an experienced attorney. They can provide you with information and guidance not only for this matter, but for other business-related decisions or questions you may face.