{"id":5280,"date":"2017-03-30T13:42:02","date_gmt":"2017-03-30T18:42:02","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-to-merge-two-companies.html"},"modified":"2026-06-04T09:54:00","modified_gmt":"2026-06-04T14:54:00","slug":"how-to-merge-two-companies","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-merge-two-companies.html","title":{"rendered":"How To Merge Two Companies"},"content":{"rendered":"\n
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How To Merge Two Companies<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A corporate merger is a voluntary combination of assets and liabilities of two or more companies into a single new legal entity. Typically the purpose of the consolidation is to expand market share, reduce operational costs, and increase overall business valuation.<\/p>\n\n <\/div>\n\n\n\n

Merging small businesses<\/span> can be very beneficial to both sides of the merger. If you\u00a0merge your small business<\/span><\/a>\u00a0with another company, you\u2019ll encounter a new set of legal concerns with your new consolidation<\/span>.<\/p>\n

Read on to learn some key points for business owners to consider before a merger and understand how to merge two companies.<\/p>\n

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What Is a Merger?<\/h2>\n

A merger is not an\u00a0acquisition<\/a>. Mergers and acquisitions<\/span> are often one department in some markets, so it\u2019s easy to confuse the two. Acquisitions occur when one company is taken over by another company.<\/p>\n

A merger occurs when two or more companies join to form one new or existing business. Both companies benefit and the people involved in the companies typically continue in the business. The\u00a0final structure<\/a>\u00a0and details vary from agreement to agreement. From a financial standpoint, the two companies generally combine their\u00a0assets and liabilities<\/span><\/a>\u00a0to improve their overall financial picture. This usually helps increase the overall\u00a0business valuation<\/span><\/a>.<\/p>\n

What To Look for in a Company When Merging<\/h2>\n

Before agreeing to a merger, look into the other company\u2019s financial, legal, and operational health. It can seem tedious, but you have to do your\u00a0due diligence<\/a>.<\/p>\n

Consider the following\u00a0critical factors<\/a>\u00a0and information you\u2019ll probably have to provide to the other company:<\/p>\n