According to the Corporate Finance Institute, a hostile acquisition, which is more commonly known as a hostile takeover, is the acquisition of one company—the target company—by another by going through the company's shareholders. The acquirer is able to acquire the target company by proxy vote or a tender offer. The difference between a hostile takeover and a friendly acquisition is that the target company's board of directors does not approve of the transaction. If the initiation of a hostile takeover is imminent, the target Florida business has a few defense options.
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?
Many business people in Florida may decide to acquire another company to help boost their own business. This decision usually should not be made lightly and it is important for people to consider a few key factors as they evaluate their options.
When one company buys another company in Florida, it sometimes is hostile. These are the mergers we so often hear about because they often involve litigation and drama that piques people's interest. However, many times when two companies become one, it is an amicable situation. This, according to Dummies.com, is called a friendly merger.
If you have an ownership interest in a Florida corporation, you want to protect that interest and receive the maximum financial benefits to which you are entitled. But what if another company wants to buy your company? Is that in your best interests despite whatever reservations your corporation’s board of directors may have?
Mergers and acquisitions are widely considered to be a healthy part of the corporate world, opening doors for competition and innovation. However, as you are aware, few mergers in Florida and elsewhere go perfectly smoothly. Most newly-merged entities experience a few bumps in the road during the first few weeks and months after the change. Indeed, it can take some businesses a couple of years to acclimate to what may feel to employees and customers as a completely new company.
When you decide to merge your Florida business with another company, this time can be hectic for both companies. However, there are many things you can do to ensure that the process is as smooth as possible.
The mergers and acquisitions process is rarely a simple and straightforward one. Executives will be confronted with new tasks and responsibilities, and employees on both sides face their comfortable, familiar company culture shifting and changing. Many may fear for their job security. At the Law Offices of Levi Williams, P.A., we are aware that consumers are also affected during mergers of Florida companies. It is important that you understand the different facets of a merger, so you can avoid the worst of the hurdles while the dust settles.
If you are the owner or high-level executive of a business in Florida, you may be eyeing the possibility of merging with another company. There can be multiple benefits to doing this that include reducing competition, increasing the breadth and depth of your offering or providing a footing into a new market area. While the reasons for merging with another business may be clear, the path to making your merger successful is not always quite as clear or easy.
Florida residents and businesses often see companies start up, go away, grow or merge with other companies. Many things can come into play in determining the path that a particular business will take including the industry in which it operates, local market forces, management teams and more. When two companies choose to join forces, there may well be expected some amount of benefit to both as well as to consumers or customers.