“Mergers and acquisitions” sounds very intimidating. That term is something huge corporations and their teams of overpriced lawyers in $3000 suits conduct. Small and medium sized businesses in West Michigan are a world away from that level of business, or are they?
MiBiz is reporting that merger and acquisition activity in Grand Rapids and West Michigan is on the increase. There were a few large publicly traded companies that completed mega-deals earlier in the year but much of the recent flurry of activity has been in the small business and medium sized entity sectors. Last week alone, MiBiz reported 3 acquisitions by local middle-market businesses. The publication also reports that there are more business transactions on the horizon.
While “mergers and acquisitions” can seem like a daunting term, in reality it is simply the buying and selling of a business or a portion of a business. These transactions are never simple deals but some are more complicated than others. Preliminary negotiations, disclosures, warranties, inspections, confidentiality, funding, additional negotiations and contracts make up all of these transactions. In the end it all boils down to one business buying another business. Whenever you are contemplating the purchase of a business it is important to seek counsel early in the process. It is easy to let emotions and desire get in the way of making a smart decision. There are also specific ways to protect your established business from making a bad investment in someone else’s business. Your small business attorney can help advise you through this process and make sure the proper steps are taken to ensure the success of the process.
Source: “West Michigan M&A activity is up, especially among small and middle-market companies” by Joe Boomgaard and Brian Edwards of MiBiz