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Need answers to questions regarding new operating agreements?

Many Illinois business owners are currently considering mergers and acquisitions as viable options for diversification or intensified focus in certain market niches for their companies. When two or more companies merge, a new, single business entity is formed. Along with merging business assets,  a blending of companies often necessitates the need for new operating agreements.

Typically, CEOs and other company leaders join together to develop merger and integration plans. Within each company, project leaders may be assigned to spearhead certain aspects of an intended merger, all operating within a common projected timeline. Executing a new contract with regard to operations once a merger deal is finalized may require skilled negotiation that focuses on the bottom line interests of all parties involved.

Often, successful mergers and integrations are the outcomes of well-developed and thoroughly researched plans that are carefully reviewed ahead of time. It's no secret that many mergers fail to produce adequate shareholder returns. Others wind up on lists for biggest mega mergers of all time, such as the nearly $80 billion forged relationship between Exxon and Mobil, which doesn't even come close to telecom moguls Vodafone and Mannesmann, the former of whom paid $180 billion for the latter.

Acting alongside experienced legal representation throughout the planning process may help achieve positive results. An Illinois business and commercial law attorney can assist any business owner in the area who has concerns or questions regarding proposed operating agreements and/or a potential business merger. It's generally best to retain legal assistance from the start, rather than scramble to find help when problems arise midway through the merger process.

Source: businessinsider.com, "Here are the 7 biggest mergers of all time", Todd Campbell, May 15, 2017

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