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Michigan-based company looking to expand its business in Spain

Business mergers often have to deal with situations where two or more companies come to the understanding that they would be better off as one company. So a merger, in most cases, is where companies decide to merge for the benefit of all. An acquisition, on the other hand, is where one company takes over another company that may be struggling to a degree but that may have intellectual property, key employees, real estate or cash flow that the acquiring company would like. Mergers and acquisitions are very similar to each other from a legal point of view and can often be used interchangeably.

Founders, a Michigan-based beer company, is seeking to expand its brand and its beer, and it wants to do so internationally. As such, Founders has decided to partially merge with an internationally famous and popular brewer in Spain, which would allow for Founders to expand its market. In bringing this merger to fruition, Founders agreed to sell 30 percent of its business to the Spain-based brewing company. Seemingly, this deal is good for both companies involved.

When a merger or an acquisition is on the table, the companies party to these kinds of transactions need to be on the same page with respect to what they want out of the deal. This is to minimize the chances of disputes cropping up later. The courts sometimes get involved in complex business formations because of the legalities that may be involved and the amount of money that may be at stake.

Detroit companies should not let this deter them from hammering together that winning deal, however. For company owners that are looking to expend, a merger may be the way to go. And business lawyers can help with this process.

Source: Crain's Detroit Business, "Founders leads craft brewers in Michigan into second stage of industry's development," Rob Kackley, Jan. 10, 2015

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