The accountancy sector has seen a decrease in practice numbers and an increase in the number of mergers. The question is, why the greater appetite for mergers in the market? Also, what are the benefits of merging as well as the legal issues that may arise?
When any two or more businesses (whether these are limited companies, partnerships, sole traders or limited liability partnerships) come together to share the risks and rewards of a combined enterprise, it can be the start of a mutually beneficial relationship. The reasons behind the merger must be considered in advance to ensure a smooth transition for all concerned. Some key factors of a merger are that there is no transfer of control, resources will combine as a result of the process and one of the biggest considerations is the fair treatment of employees and ensuring that the equilibrium is maintained as much as possible.
The top end of the accountancy sector is seen to be dominated…
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