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Competing tech companies announce pending merger

On Behalf of | Jul 17, 2020 | Business Law |

For many businesses in Naples, acquiring or merging with another company may be the most logical next step in their growth. Such an action may help them in growing their market footprint and/or expanding their product portfolio. Iy may also help bring in resources in the form of both capital and personnel that will help support (or even improve upon) its current operations.

Yet an M&A venture is by no means easy. On top of the regulatory processes that business owners must adhere to, there is also the need to manage the relationships with investors and shareholders, as well as the public relations aspect of such action.

Stocks fluctuate upon news of tech company merger

Even the news of a pending merger can have a dramatic impact on a company’s financial outlook. The details of a potential merger recently announced between two tech companies illustrates this point. Investors Business Daily recently reported that Massachusetts-based Analog Devices plans to acquire competing company Maxim Integrated Products (based out of California) in a deal reportedly set to culminate next summer. The merger is an all-stock deal estimated to be worth $21 billion. Upon news of the merger, the markets saw Maxim’s stock price rise (with Analog’s share price dropping).

Managing M&A venture expectations

While share prices may remain fluid throughout the M&A process, improper management of the actions, approvals and expectations of all parties can lead to both financial losses and stakeholder uncertainty. Thus, it is important to have access to guidance on regulatory standards and industry best practices to ensure that things go smoothly. An experienced business law firm may be a good source of such resources.