Sometimes even successful businesses can run into trouble, and when that happens, they are faced with the choice of either going out of business or merging with a larger company. Merging with a new company can increase your growth potential because it will give you access to their connections and help get your products or services in front of more people. However, working with an experienced Milwaukee mergers and acquisition attorney is in your best interest to ensure that a merger is the right move for you.

There are many reasons why two companies choose to merge, including expanding into new territories, adding technologies, reducing costs, eliminating competition, or boosting revenue and market share. In recent years, more and more unicorn startups (startups valued at over $1 billion) are choosing to merge with other firms in order to scale and become profitable.

Regardless of the motivation, business mergers often lead to changes in company culture, leadership, and structure. The type of merger structure you choose to pursue will impact everything from integration planning to governance and shareholder dynamics.

When deciding to acquire or merge with another business, the first step is carrying out a detailed valuation of the other company’s assets and liabilities. Then, you can prepare a transaction agreement that will be signed by both parties to transfer ownership of the business. Once the agreement is finalized, you will need to register your changes with the state and obtain new bank accounts, tax IDs, and licenses if necessary.