Looking to merge with a larger company and would like a list of key questions to ask the company prior to merging with them.
1) What is the strategy behind the merger? Why do they want to merge?2) What is the proposed deal structure? What will be exchanged (cash, shares, others?)? How would each company be valued?3) How will the two companies function? Will they be operated independently or will they merge their operations?4) Will there be any layoffs?Try some books that tackle Mergers and Acquisitions and you will get more answers.
What are their financial goals? Strategies? Plans? If companies are public, how will investors view the deal? What is the company worth? Are their assets cash or stock? Is the stock a strong currency? What will be the credit rating of the new company? What expenses and debts do they have? What will be the make-up of the new management team? Who will come from what companies? Who will contribute to the Board? What sort of clauses would allow either entity to walk away from the deal after signing? These are a few important ones.
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