April 22, 2010

Conditions of divorce

All relationships have a limited duration. At the beginning of a relationship we might think that all will be well for eternity. However, the world is changing very quickly. The assumptions made and the utilized data change in time, and this change leads to different outcomes.

The situation is not different in mergers of two companies. Developments in technology, the globalization of markets, changes in the environmental conditions and various other reasons influence the duration of a merger. For example one of the important factors that affect the duration of the merger of an SME is old age. The shareholders of the SME’s  get older in time.

As a businessman you should agree with your new partner on the conditions of your divorce and the exit strategy before the merger is realized so as not to experience problems in the everyday operations of your business after the merger. Otherwise, you might carry a heavy fear of loss due to not knowing what the future holds for you, considering that your partner is most probably stronger than yourself.

A partner who is stronger and bigger than ourselves could say, “we are getting along well… we don’t need to talk about divorce and exiting now… we will surely come to an agreement if that day comes.“ Obviously, it is logical for him to talk in such terms by considering his own interests.

Then you should tell him that you wish to sleep peacefully, without any distressing thoughts going aroud in your mind. If the potential partner still insists on continuing with the merger without discussing the exit conditions, then you can inform him that others are patiently waiting for your hand. If you really have another interested party, then the whole process will proceed with ease and your potential partner will quickly grasp his standing and will come out with a mutually agreeable exit strategy.

When you have determined the conditions of divorce, then you don’t have to worry about an uncertain future. You can collect all your energy to concentrate on your business and work to attain the best possible results from the merger.

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