August 5, 2014

Apple/Beats acquisition deal now official

Previously on this blog, it was discussed that Apple and Beats had entered an acquisition deal. However, before the deal could go through, it had to receive regulatory approval. 

According to a recent article in the Wall Street Journal, the deal was approved last Friday. The acquisition was for a reported $3 billion. 

Oftentimes when two large, influential companies enter into a merger or acquisition deal, the deal will be subject to regulatory approval. This approval process is necessary to ensure that the marketplace stays competitive and that the deal will not be a threat to competition. 

Regulatory concerns are important, but there are other considerations companies face throughout the process of the deal. 

Although many acquisition deals are often used to gain talented workers, in some cases, positions will be eliminated as the organization undergoes a structural change. The Wall Street Journal reported that Apple will be eliminating 200 positions from Beats. The company has around 700 positions, but due to overlapping areas, Apple has to get rid of them. The company says it will try to bring these workers on in new roles. 

The transition of employees to new roles and the possible elimination of certain positions are other considerations that must be accounted for when working out a merger or acquisition deal. When two companies join together, they may have different cultures and employees should be prepared to handle what the new company culture will be like. 

With adequate preparation, companies can prepare to successfully handle the transition. An M&A advisor can serve as a trusted resource to help your company plan an acquisition strategy and guide you through all aspects of the process.