Aldrich Law Firm, Ltd.
Aldrich Law Firm, Ltd.

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Planning for a successful business merger

Las Vegas companies may have high hopes for the profitability of their enterprises after a merger or an acquisition. However, from 70 to 80 percent of all such projects fail to live up to the anticipated value expected during the process. In most cases, this is not because the acquired firm was overvalued or unexpectedly weak. A poor strategy to integrate a new acquisition can cause businesses to lose out on profits and reaping the full benefits of their mergers. By introducing delays along the way, an unprepared business can sap the momentum spurred on by the acquisition. In order to achieve a successful transaction, advance strategic planning can be essential.

Many experts state that the first 100 days of a merger or acquisition is central to the long-term value proposition of the deal. Businesses should look to see valuation increasing during that time in order to avoid a stagnating situation. In these first three months, businesses can put in place a real plan for change. This plan should be devised before the transaction has closed so that it is ready to go when needed.

Creating this kind of plan can help businesses to have a full understanding of the steps they need to take right away to maximize value and benefit from the deal. This 100-day plan should include a clear overview of the goals of the merger as well as a vision for consistency, stability and ongoing growth.

Even the best plan may need to change, however. New information can come along with an acquisition, and flexibility can lead to greater benefits. When planning mergers and acquisitions, a business owner can work with a commercial law attorney throughout the process.

John P. Aldrich
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