A corporate merger and a cooperation are two different types of business relationships between companies. A merger is based on contracts in which several companies stipulate agreements and conditions of their cooperation. There are different forms of business mergers, which are classified as horizontal, vertical or inorganic mergers, depending on their direction. The degree of independence also plays an important role in the distinction. If companies remain largely independent, they are cooperations. However, if they give up most of their independence, it is referred to as a business combination or acquisition.
A business combination refers to the merger of two companies (or more). This is usually done by the purchase of shares, stock or assets of one or more companies by another company. The goal of a merger is usually to create a larger company, such as a corporation, with more resources to be more competitive and achieve economies of scale. If a merger results in the creation of a group, i.e. an economic unit of the merged companies, the group assumes unified management, while all participants retain some of their independence, provided that this is stipulated in the terms and conditions.
The definition of a cooperation, on the other hand, refers to the collaboration of at least two or more companies that wish to jointly achieve a certain goal. Cooperation can take the form of, for example, strategic alliances or partnerships, joint ventures, consortia, communities of interest and joint ventures, or cartels and syndicates. The purpose of a cooperation is usually to leverage the strengths and resources of each partner to achieve a common objective. A full merger is not required in this case, which is why the companies involved retain their economic independence.
In a personal consultation, your partners at Saxenhammer determine which form of merger or cooperation is suitable for you and your company, in order to achieve your desired economic and strategic goals. With a tailor-made strategy, we carry out the merger or acquisition, professionally and successfully, taking into account all legal, tax, financial, and economic aspects.