Did you know that according to some studies 70% of mergers fail due to poor post-merger integration?
Post-merger integration involves taking the assets, management, employees, properties, customers, back-office operations, business philosophies, and more of two, or sometimes more, separate companies and combining and rearranging them in a way to ensure the goals of the merger are reached.
An often overlooked component of this stage is corporate legal compliance. All of the constituent companies, and especially statutory entities such as corporations or LLCs, have been required to file numerous documents and reports with state, local, and federal government offices. And each company has information on file with these government agencies that has to be updated post-merger to make sure the agencies are aware of the changes caused by the merger.
And while not always considered a part of post-merger integration, ensuring that public records reflect what happened to the merger’s surviving and non-surviving entity (or entities) is definitely a part of post-merger risk management. A failure to update these records can create serious issues for your company, including fines, penalties, the potential loss of status with the state, courts, and more.
In this article, we cover what you should do after the merger goes into effect regarding the constituents’ public records filings to ensure a smooth, post-merger risk management process.