KSA Engineers recently announced that it will acquire Louisiana-based Alliance Inc. The acquisition will allow the companies to provide their customers with a broader array of services and expand into new markets throughout the southern United States.
The companies have a history of working together, but as readers in Louisiana know, any business acquisition can be complicated, requiring considerable fluency in business law.
According to the president of KSA, the company is optimistic about the merger and believes that it will meet the current company goals of expanding into new areas of service. Since the two companies have worked together for the past 15 years, the president feels the merger is a natural progression of events.
Alliance is an engineering firm with a long history of providing architectural and planning services to customers in Texas, Louisiana and Arkansas. And Alliance and KSA worked together on several street and airport projects.
KSA, seeking to acquire full ownership of Alliance, opened negotiations with Alliance’s major stockholder. The stockholder seemed excited about the merger, suggesting that the deal would create great benefits for both companies by bringing together complimentary services.
KSA indicated that a number of the company’s past projects have required subcontracts with architectural firms. It is expected that the new merger will limit KSA’s need to subcontract those jobs in the future.
If mergers are done right, they can be highly beneficial to all the companies involved. However, no matter the expected benefits, mergers can be very complicated to execute. Even when two companies have a history of successfully working together, they can hit unexpected bumps in the road that can prevent going forward. That is why companies intending to make an acquisition will want to explore all of the legal options for ensuring a smooth a transition.
Source: news-journal.com, “Business Beat: KSA makes acquisition, adds services,” Mike Elswick, March 4, 2012