Key Steps In Merging Debt Consolidation Companies And Law Firms

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Bringing two companies together successfully can take a lot of work.  The process is long and tedious with plenty of room for errors.  To get it right the first time and avoid mistakes that could cost the company, there are key steps in the process that should be followed. 

Separate Legal Teams

A rookie mistake when purchasing a business outright or merging two companies is to share the legal fee and choose one representative.  This is a grievous mistake as one representative will have an interest that tends to favor one company over the other.  Choosing separate council can help to insure both companies get what they need from the merger and that they are protected through the process. 

Perform Due Diligence

Both companies and their representatives need to do their homework.  Research into the other company, their sales, their models and policies and even their employees can be a critical part of the process when two companies are forming one.  This step should come with seeking legal counsel or even before.  Choosing to do so before may help you decide you don’t need legal advice as the merger isn't happening. 

Research Merger Models

There are charity merger models and others available that will give you an idea of what to expect.  Taking some time to read through these can help you prepare for what your company is after.  This step in the process can be done anytime but should be reviewed before final paperwork is gone over because it will get you in the right mind frame as well as alert you to any questions you need answered before signing. 

Final Paperwork

When everything has been gone over and the merger is still in the mix you’ll move forward toward signing final paperwork.  This is again where it’s important to have your own legal advisor.  Make sure to carefully go over the paperwork with your advisor so you know what your company is signing on for.  

Top Reasons Debt Collection Agencies Are Merging

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Across the board more and more debt collection agencies are merging.  These mergers take different forms, include two or more companies and often put the collection agency in a better financial state.  For some, the idea of a debt collection agency merging with another can bring up questions and not the least of which is simple; why? Consider some of the following reasons these agencies are merging. 

Lowered Costs

Two debt collection agencies coming together to make one often reduces much of the costs that are going out.  Companies can combine assets so they will not have to purchase double, therefore saving money this way as well.  It is also not unusual for companies that consolidate to share office space and therefore save substantially this way as well.

Pooled Resources

One reason that costs will be lowered when a company is consolidated is because they are able to pool their resources.  Besides helping to reduce costs, pooled resources will help a company be able to tap into a larger base of potential assets for what they need.  With collection agencies it often means one call center instead of several.  It will also mean that key employees can help from one company to the next.  This pooling of resources will often make it easier to take care of clients as well as keep costs lowered and increase profits. 

Harsh Economy

It is no secret that the economy is in a prolonged stall to say the least.  In order to stay alive in this stagnate economy more and more companies have to get creative with their business plan.  The economy has made it difficult for many people to stay in business and this difficulty has climbed right up the ladder to even the largest debt collection agencies. 

Business Development

When collection agencies consolidate together they often are able to learn from each other.  One company may be excellent at marketing while the other company may be better at customer relations.  Sharing these skills and teaching each other how to acquire them can go a long way to building a better company overall.  

What are some of the reasons debt consolidation companies are merging?

Pitfalls To Avoid With A Merger

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Two large companies coming together in the name of business can provide substantial benefits for everyone involved when the process is done in a detailed fashion.  When the merger or acquisition is jumped into without much thought, care or effort everyone involved and many not involved stand to lose out.  Consider some of the biggest pitfalls even the most detail conscious companies are guilty of. 

An Absence Of Growth Strategy

In order for a business to be successful it must grow and be able to respond to the changes in a marketplace.  This goes for both legal firms and debt consolidation companies.  A growing firm is likely to discuss merging with or acquiring another company.  Before important steps are made in that direction it is critical that a proper document that strongly articulates a strategy for growth gets drawn up. 

A Relaxed And Friendly Approach

While it’s true that staying friendly and professional is key to making a smooth transition, it is also true that if you have your guard down and take the acquisition or merger too casually you’ll be in for some tragic surprises.  Take the time to comb over all pertinent documents, seek legal advice and fine-tune the contract before signing and you’ll be glad you did. 

Not Taking the Time To Perform Due Diligence

Like any homework, due diligence can often get pushed to the side and forgotten about.  With a move as big as two companies coming together it is one of the most important things you can do to insure it goes smoothly.  Take your time to do all your homework and if you’re at a loss as to where you should start then seek professional assistance.  The money you spend on a high quality advisor will be worth it when you don’t have sudden surprises that turn out to be losses. Two large companies coming together in the name of business can provide substantial benefits for everyone involved when the process is done in a detailed fashion.  When the merger or acquisition is jumped into without much thought, care or effort everyone involved and many not involved stand to lose out.  Consider some of the biggest pitfalls even the most detail conscious companies are guilty of. 

An Absence Of Growth Strategy

In order for a business to be successful it must grow and be able to respond to the changes in a marketplace.  This goes for both legal firms and debt consolidation companies.  A growing firm is likely to discuss merging with or acquiring another company.  Before important steps are made in that direction it is critical that a proper document that strongly articulates a strategy for growth gets drawn up. 

A Relaxed And Friendly Approach

While it’s true that staying friendly and professional is key to making a smooth transition, it is also true that if you have your guard down and take the acquisition or merger too casually you’ll be in for some tragic surprises.  Take the time to comb over all pertinent documents, seek legal advice and fine-tune the contract before signing and you’ll be glad you did. 

Not Taking the Time To Perform Due Diligence

Like any homework, due diligence can often get pushed to the side and forgotten about.  With a move as big as two companies coming together it is one of the most important things you can do to insure it goes smoothly.  Take your time to do all your homework and if you’re at a loss as to where you should start then seek professional assistance.  The money you spend on a high quality advisor will be worth it when you don’t have sudden surprises that turn out to be losses.  

When looking to consolidate a legal firm, what steps should be taken to insure it works well?

Key Elements Of An Effective Legal Merger

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These days more and more companies are working hard to stay afloat in today’s struggling economy.  This has made more of them delve into a reserve of different ideas and concepts to keep their struggling companies from folding.  One concept companies have been utilizing is merging.  Some of the benefits a legal company will see with a merger are:

• Lower costs
• Improved business structures
• Improved bottom line

A consolidation can be very complicated causing delays in bill payments, missed communication and a host of other possible errors.  In order to have a highly successful consolidation or merger some of the following should be considered:

Strategic Planning

Firms have to look at other firms as a tool when they are considering consolidating with them.  This means they have to hunt for a firm that has key players that will be a good addition to their team.  It also means it’s critical to consolidate with a company that is of the highest quality you can. 

Look For A Firm That Complements Yours

When looking at other firms to consolidate with, you should look for one that has skills that can be considered a compliment to those that your firm offers.  If you’re looking to move into other areas of legal practice then you should look at firms that offer these services.  If you’re looking to expand in a particular area that is the type of company you should consider merging with. 

Due Diligence Is A Must

Consolidating or merging with another firm can be one of the biggest things your firm does to increase business.  For this reason it’s critical that your due diligence is completed.  Finding annual reports, interviewing those who work for the company and doing as much research as possible are all critical in making sure it’s a move that will be beneficial to your firm.