How Transcription plays a role in Business Merger Process

Corporations can grow through a merger, which happens when two firms, typically of the same size, go forward as a single firm instead of being separately owned and operated. The stocks of both firms are surrendered and new company stock is issued. Businesses can enjoy benefits such as staff reductions, economies of scale, acquisition of new technology, improvement in market research and industrial viability through a merger. However, the merger process is a great concern for most companies as it could be full of risk and uncertainty. To make this process easier, prior effective planning and research is essential. Transcription of business communication will enable businesses to do their research well and devise viable plans accordingly.

Major Steps Involved in the Merger Process

>> Market Evaluation – This is the first step in which the present and future market value of the target company is thoroughly examined and evaluated. The target organization’s history with respect to organizational structure, market share, capital gains, distribution channel, corporate culture, business strengths, and credibility in the market as well as products/services, facilities and ownerships are reviewed. A thorough research is done on marketing approaches as well.

>> Proposal – Once the comprehensive analysis and review of the target company is complete, a proposal for merger is given. This proposal includes complete details of the business deal including the strategies, amount and commitments and is usually sent through a non-binding offer document.

>> Exit Planning – When any company decides to sell its operation during the merger, then that firm plans the right time for exit. A lot of issues should be considered before making exit planning such as continuing business involvement, debt resolution, and tax issues among others. The form of compensation (cash, stock, convertible bonds, royalties and more) also plays a significant role in determining the exit planning.

>> Forming Business Deal – Once the merger and the exit plan are finalized, the new company will have to focus on developing marketing initiatives and effective business strategies to establish credibility and enhance the business.

>> Merger Agreement – The final merger agreement papers are generated in this phase. This states the entire transaction details including regulatory approvals, financing sources and other conditions of sale.

>> Stage of Integration – This involves the final preparation of the document, signing the agreement and negotiating the deal. Both companies come together with their own parameters and make sure that the new single company carries the same rules and regulations throughout the organization. The parameters of their future relationship are also defined.

>> Operating the Business – Once the agreement is signed and you enter into the undertaking, operating the business venture is very important. This operation is to help meet the stated and pre-defined expectation of all the parties involved in the merger process.

Critical Role of Business Transcription

Transcription of recordings involved is crucial for every step in the merger process to ensure that everything is going smooth and no miscommunication is there. Here are the ways in which transcription makes a significant impact on a business merger.

>> Official Documentation – A number of documents are to be created before and during the merger process such as agreements, letter of intent, contracts and so on. Proper documentation and understanding of the language is very critical for smooth going. Since it is a hectic job to deal with stacks of paperwork, there is a strong chance for errors. With experienced business or legal transcriptionists, formal and standardized documentation can be created for every step of the merger process; the documents will be edited if necessary, and made up to date and accurate.

>> Business Meetings – During the merger process, there would be many business meetings with the shareholders, the board of directors, and/or the CEO. The information for market evaluation, exit planning and structuring business deal is acquired from these meetings. Business meetings have a very important role in making negotiations and agreements. Experienced business transcriptionists can transcribe the audio/video recordings of the meeting in a standardized format. This will be useful not only for implementing a successful merger deal, but also for the future relationship of businesses.

>> Teleconferences – Businesses host teleconferences apart from face-to-face business meetings to discuss the merger deal. Everything said during a teleconference need to be documented well for future reference. Instead of vague meeting notes, transcription of conference calls can provide you with detailed documents for future reference.

>> Creating a Letter of Disclosure – Once the merger deal is sealed, you can utilize transcription to create a letter of disclosure to inform the public. In this, you can specify the areas wherein changes are going to take place and what effect they may have on your customer base.

>> Further Documentation – Transcription can be used for comprehensive documentation of post-merger reports, further business meetings and other recordings.

There are different types of business mergers such as horizontal merger (two firms in direct competition and share the same products and markets), vertical merger (a customer and company or a supplier and company), market-extension merger (two firms sell same products in same market), product-extension merger (two firms sell different, but related products in different markets) and conglomeration (two firms have no common business areas). Whatever be the type of merger, professional transcription companies can help generate accurate and timely documentation for each. Rather than overburdening your staffs, it is always advisable to rely on a dependable transcription service provider to take care of all the documentation related to the merger deal.

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