Mergers and acquisitions are highly complicated business transactions that must be entered into with careful consideration. It is not as easy as a one-time transaction or purchase, and there are financial, employment and organizational implications to think about.
As such, it can be prudent to approach growth opportunity discussions with caution. A potential deal could certainly be exciting, but a lot of work goes into these transactions and there is the potential for it to fall apart.
Recently, for instance, discussions between Uber and an independent freight logistics company reportedly failed after months of discussions regarding Uber’s purchase of the company.
Details on the purported discussions are sparse, but sources say that Uber wanted to acquire Load Delivered Logistics in an effort to expand its reach and offerings in the trucking industry.
It is not clear why the discussions came to an end, though some speculate that Uber’s ongoing CEO issues and a particularly strong quarter for the logistics company could have affected the negotiations.
While talks between the two companies have ended, this can serve as a reminder that not all merger and acquisition discussions are successful. They can and do fail for a number of reasons, from logistical challenges of reaching a deal to one party’s decision against buying or selling.
Whether your company is assessing options for growth into a new area or dealing with internal issues that could jeopardize a transaction, it is important that you identify solutions that minimize disruption and allow you to focus on the future of your company.
Considering all that is required in these situations, business owners would be wise to have the guidance and insight of an attorney who understands industry regulations, effective dispute resolutions methods and the challenges of running a business.