"The Business of Doing Business: Items to Consider in Creating, Merging and Acquiring Businesses"

In her article for the Summer 2023 edition of CLDA Magazine on the complexities of creating, merging and acquiring businesses, Swift Currie partner Cristine Huffine highlights the critical steps and considerations involved in these processes. She underscores the importance of starting with a well-structured business plan, stating, "A clearly-defined business plan lays out the reasoning for a company’s founding, outlines the capital required to get the new venture started, outlines the financial projections displaying expected costs versus anticipated projects, and states the strategy and future goals of the company." This plan not only serves as a roadmap but is also crucial for securing funding and keeping the business on track.

Huffine emphasizes the significance of due diligence when merging with or acquiring existing companies, noting, "By requiring due diligence, a buyer will gain an inside look at the overall operations of any business being considered, the consistency and quality of financial information and the overall perceived value of the entity." She highlights the need to assess various aspects, including financial stability, customer contracts and potential liabilities, to make informed decisions. Throughout the article, Huffine stresses the importance of compliance with state and federal regulations, the necessity of proper insurance coverage and the significance of meticulous planning and documentation in these complex business processes.

To read the full article and publication, please click here.