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Four of the most common misconceptions about mergers

On Behalf of | Jun 24, 2021 | Business Law

Are you getting ready for a business merger in Texas? Unfortunately, there are lots of myths about mergers. By separating merger-related myths from the truth, you can have a better understanding of what happens when two or more companies come together. Here’s a closer look at some of the most common merger myths.

Mergers lead to job cuts

When companies join together, it’s understandable for some employees to feel that their jobs might be on the line. However, this doesn’t always happen. This myth persists because news outlets often report on job cuts in any industry. Unfortunately, there are times when these cuts coincidentally become official before or immediately after a merger.

Losing a company’s identity

One of the most common myths about mergers is that they cause one or all companies involved to lose their brand identities. While that might have been true in the past, many successful companies now realize the power of housing multiple brands. If done well, a merger can often lead to several companies coming together to strengthen their overall brand family.

Mergers are only for failing companies

A problem that many business owners deal with is understanding when it’s time to join forces with another company. It’s common for some company owners to place their businesses on pedestals and hold on to them longer than they need to. By not partnering up with another company when the time’s right, it could mean that your business comes to an end.

Mergers must remain secret

In certain situations, companies choose to keep mergers secret. This decision is often made to avoid said companies creating any potential business law violations. If you can legally mention details about a merger, present the positives that will happen from this event.

In conclusion, there are many myths about business mergers. That said, don’t let these myths discourage you from merging with another company. When done correctly, mergers are great ways for companies to join forces and achieve success together.