A Business Merger Should Make Good Business Sense

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Wednesday, March 28, 2018.

When one company buys out another or several businesses merge their assets, it's likely that much thought and consideration of various factors went into the process ahead of time. It would not make much sense for a business merger to occur on a whim or spontaneous risk-taking endeavor. California business people always have their bottom line interests in mind, and they try their best to avoid making any deal that may cause them economic loss.

That's why many interested parties seem to be wondering whether a proposed merger between Target and Kroger stores would make good business sense. Some say they believe the companies are merely grasping at straws, each trying to stay afloat and willing to try any business merger necessary to do so. One source claims the Target/Kroger rumors are just that although the companies reportedly met to talk about a possible partnership with another company Target acquired for more than a half million dollars.

Business analysts have said that Target and Kroger need to be able to compete with Amazon and other electronic commerce giants. Many grocery stores like Kroger grew worried when Amazon bought Whole Foods for more than $13 billion. This has caused many grocers to fear a demise in the industry similar what department stores chains experienced when online shopping increased exponentially in sales.

It remains to be seen whether there is legitimacy to the Target/Kroger merger rumors. One thing is certain: In a competitive market where online sales are expected to exceed $100 billion in the next five years, brick and mortar store chains have their work cut out for them. An experienced California business and commercial law attorney can provide many services that can help business owners in this state maximize production and profitability.

Recent Posts