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What are a merger's benefits?

Your business has done very well for itself, and you're in a position where you can continue to grow it or opt to merge with another corporation. A merger occurs when you agree to sell your company or merge it with another larger corporation. You might do this to eliminate the risk of confusion by consumers or to sell off your business to go on to do other things yourself.

In any case, a merger does not destroy your business. It's a helpful way to boost the value of your company, to encourage shareholders and to extend the reach of your company. Normally, you'll remain with your business following the merger, but in some instances, you may allow yourself to be "bought out" and leave the company completely.

Are there benefits to mergers?

The benefit of merging with another corporation depends on your goals. If you intend to extend the reach of your products or to boost the value of your shareholder's assets, then the merger could be the boost you need to do so. A merger doesn't necessarily eliminate your company name. Take, for example, the merger of three companies, Ambev, Anheuser-Busch and Interbrew. They hyphenated the new name of the business to become Anheuser-Busch InBev, representing all new parties of the joint merger.

If you do not want to see your company join with others, you might resist a merger, but it can be a major boost to go through with one. If you're approached about a merger, it's a good idea to work with your attorney to decide if it's the right choice for your business.

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