It can be hard for a New York business to get going and find success in its first years of operation. An estimated half of all new small businesses close within their first 5 years. It can be hard for some business owners to keep fighting for their dreams when it seems as though the world is stacked against them. However, complete closure is not the only end that a small business may face. If there is interest, a business may be approached about participating in a merger.
While it is usually mergers between big companies that make the evening news, mergers can happen between smaller, local entities. A merger happens when two businesses agree to join together into a single business. A merger may involve one company buying another and folding its operations into the purchaser's operating scheme, but this is often referred to as an acquisition.
Mergers are not always good business decisions. If a company chooses to merge with another and the second entity is struggling financially, the first company may not want to take on the second's liabilities. It is important that businesses and their owners attempt to find out as much information as possible about the companies they plan to merge with before they start the processes.
Carrying a business through a merger can be an overwhelming experience, especially if the business owner has fostered their own small business from its inception, up to the point of merging. It is always a good idea for individuals to get help with their business law needs from the help of attorneys who are familiar with their legal needs.