Mergers

In today’s marketplace, it is not uncommon for two firms of similar size and business synergies to combine both entities for the good of the firms and their clients. A Merger of Equals strategy can offer a way to achieve a corporate development objective other than a traditional acquisition or divestiture. However, the challenges in establishing such a strategy are frequently underestimated, causing a substantial number of such initiatives to fail at significant financial and opportunity cost. The keys to a successful merger include a strategic rationale, strong relationships, and tightly defined terms that address not only typical economic points but also the alliance’s decision-making process, its conflict resolution mechanism, the right of either party to access information, and the best method of exit.

Gladstone provides the expertise in dealing with the many forms of mergers. Gladstone provides the expertise in dealing with the many forms of mergers. We identify an appropriate partner for our client, if one has not been pre-identified, and construct the ideal structure and terms of the merger in an orchestrated, confidential manner to create a collaborative environment. As negotiations involving sensitive intellectual property are often difficult, Gladstone plays a vital role as intermediary, helping preserve the relationship among principals whose continued trust and communication will be essential to the success of the combined firms going forward.