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It Takes Time to Organize a Successful Business Merger

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Thursday, May 17, 2012.

Businesses make use of a number of strategies to expand or diversify their business. One of these strategies is a business merger, which brings two or more businesses together as one. In many cases, a business merger occurs when one business is to the point where they need to sell their business because they simply cannot afford to continue running it. However, this isn’t always the case, such as with a recent merger of two businesses in California.

Westinghouse Solar Inc., out of San Jose, and CBD Energy Inc, from out of the country, have announced a business merger as of May 9. The merger, which was approved by both companies’ board of directors, will take effect sometime within the third quarter of this year. It will take place after certain conditions regarding closing have been met and once all shareholders have approved the transaction.

A business merger is not something that occurs overnight. It took several months for these two companies to come to agreement on merger conditions. However, it can often take longer than a few months for two companies to find an agreement that is substantially beneficial for both companies. There are numerous meetings, discussions and it takes incredibly hard work to make a business merger really work.

Understandably, problems can arise with a business merger. Therefore, it is often beneficial to understand one’s rights under California law to ensure they are protected both as an individual and as a business. After months of hard work, a business merger that fails can be devastating. By taking steps to ensure success, a business merger can likely be obtained quickly, efficiently and equally beneficial for every party involved in the transaction.

Source: Market Watch, “Westinghouse Solar and CBD Energy Sign Definitive Merger Agreement,” May 9, 2012

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