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Naperville Business Attorney Discusses the Planned DuPont-Dow Merger

Naperville Business Attorney Discusses the Planned DuPont-Dow Merger

For many business owners, especially those running small or mid-sized companies, the idea of someday joining forces with a competitor may seem completely outrageous. However, depending upon your industry, your goals, and your individual circumstances, a merger could potentially offer a unique, profitable opportunity, and may even allow to keep significant control over a large portion of your business. As a business law attorney in Naperville, I see examples of successful mergers on a regular basis, both in my practice and around the corporate world. Today, I would like to use a planned high-profile merger to illustrate some important things to consider when you are thinking about the future of your company.

Major Announcement

Earlier this month, the Wall Street Journal reported that Dow Chemical Company and the DuPont Company announced a plan to merge the two giants, forming the world’s second largest chemical company, behind only BASF SE. The new behemoth, if approved, would be worth an estimated $120 billion and, based on last year’s numbers, could expect revenues in the neighborhood $90 billion. According to the report, within two years after the merger, the company would then be split into three separate arms, each to be publically traded, focusing on agriculture, material sciences, and nutrition and electronic specialty products.

Financial experts are presenting the merger as the joining of two equals, rather than the acquisition of one company by the other. Dropping prices and a strengthening American dollar, along with tax considerations, make the planned union particularly attractive, despite ending the independence of two of America’s oldest companies. Tentatively named DowDuPont, the company will be dual-headquartered in Michigan and Delaware, with DuPont CEO Edward Breen keeping the title for the combined company, while DOW CEO Andrew Liveris will be the executive chairman.

Some Things to Think About

While you may not be able to fully control all of the circumstances surrounding your possible merger, working with a knowledgeable attorney can give you an edge as you take a good look at the potential. Similar to buying a business or starting a new one, you will want a merger to maximize your opportunities and minimize difficulties. This means that you will want your company to be fully prepared and efficient, proving that you are a worthy partner.

You will also need to carefully consider the terms of any potential merger and the role you wish to play—or not play—in the new company. Whether you want to negotiate a controlling interest or a more hands-off role, you can structure your merger accordingly. A merger may even be an option as you look toward making a business succession plan.

Contact Us Today

If you have questions about how a merger could benefit you and your business, speak with an experienced Naperville business attorney. We will help you explore your options and work with you in developing a profitable plan for your company. Call 630-756-1160 to schedule a consultation at the Gierach Law Firm today.

 

Sources:

http://www.wsj.com/articles/dupont-dow-chemical-agree-to-merge-1449834739

http://www.cbc.ca/news/business/dow-dupont-merger-talks-1.3357703

http://www.bizjournals.com/bizjournals/how-to/growth-strategies/2012/11/10-things-to-ask-before-managing-a.html

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