Unwilling To Sell Your Business? Consider a Merger

Aberdeen Advisors M&A: business men shaking hands

The top three challenges of running a business, according to a report by the National Association of Small Businesses, are as follows: the cost of health insurance benefits, a decline in customer spending, and economic uncertainty. In the age of a fluctuating economy, it’s particularly a sense of economic uncertainty that can lead to the many business mergers and business acquisitions that occur in the corporate world.

If you own a business and looking to retire, but don’t necessarily want to let go of your company, business mergers are an option to consider. Business mergers and acquisitions typically include an acquisition, merger, consolidation, reorganization, capitalization, and business combination.

The difference between mergers and acquisitions

Business mergers and acquisitions are different in terms of how they are combined into a single company. If you’re looking to combine your business with another business for profit, but with your company still existing as its own entity, you might be interested in merging.

However, acquisitions take place when your business is completely absorbed by another company. Therefore, pay attention to the details when performing a business venture such as a merger, so you are clear on what will happen to your business after you retire.

Why is a business merger a good choice?

You have a variety of options in front of you when you’re unsure of what to do with your business as you age. For some, selling a business is a good strategy, particularly when finding the right buyer is only a moderately difficult feat.

However, some business owners are unwilling to fully part with their companies even when it’s time to retire. A business merger may be a great way to reduce expenses, penetrate the market, enhance your business’ skills, and diversify your company.

As you age as a CEO, you may be more concerned with your budget and keeping revenue. Business mergers might lower the cost of raw materials and reduce the need for specific employees, thus lessening operational expenses. You are also likely to access a wider range of customers through a business merger, especially if the company you choose to merge with is connected to a different range of products and services.

The merging of two companies into one is essentially taking two great business minds and linking them together to produce an ultimately successful corporate entity.

Consider a business merger if you are uncertain of selling your business as you begin to retire. Selling your business will alleviate stress while additionally making you money, but for those unwilling to fully let go of their business, a merger may be another viable option to consider.