LHCPA Insights

Key Questions to Ask Before Joining Another Business

Written by L&H CPAs | Jun 23, 2019 2:00:00 PM

Merging with another company can be the most efficient way to grow -- if you plan carefully. Failed mergers and acquisitions are often the result of management problems, not market conditions.

If you are considering joining forces with another business, here are a few key questions to ask:

Do you have compatible goals and ethics? Be sure there's a good fit between financial structures, customer bases and corporate cultures.

Have you performed a complete due diligence? Scrutinize the financial factors, check with customers, chat with vendors and interview employees. The more you know, the fewer surprises you¹ll
encounter.

Who's in charge? Give the team the time it needs to prepare for the arduous task of merging corporate
cultures. Don¹t automatically get rid of the old guard. Experience provides stability and helps navigate the
challenges.


This is just the beginning. There's a lot more to be done before and after a merger or acquisition. Contact us. We can help you decide the best way to structure a transaction and how to deal with the tax implications.