December 8, 2016

Be Wary of Mergers of Equals [Video]

In the tech world, it is common for large companies to purchase smaller startups that possess specific technology or personnel that the buyer wants. However, sometimes firms of roughly equal size enter into mergers.

In these circumstances, it can be tempting for the two parties to divide leadership responsibilities evenly. This couldĀ be a devastating mistake. In any partnership, disputes may arise that will be impossible to resolve without one party taking charge.

It might make sense for one business to take responsibility for deadlock resolution. A merger and acquisition firm can help establish a framework for this process.