Relatively small companies based in Tennessee or elsewhere may acquire, or merge with, even smaller companies for a variety of purposes. Mergers and acquisitions is that area of the law dealing with such transactions. A company that is growing often turns to acquiring additional units that will complement the existing business.
This can be done to enhance the company’s geographical reach or to expand its technological services, or for a myriad of other reasons. The purchasing company is usually the company that will technically survive the merger or acquisition in a legal sense, but it is common for the owners of the acquired company to remain with the newly constituted enterprise. For example, Dean Dorton, a company specializing in business management, consulting and technological services, recently purchased Massey Consulting, a full-service consulting company that is expected to increase Dean Dorton’s offerings in the area of software solutions.
In addition, Dean Dorton’s chief executive, David Bundy, announced that the purchase gave the company the opportunity to enter new geographic markets. Dean Dorton is based in Lexington, Kentucky, with a significant presence in Louisville. Massey is located in Raleigh, North Carolina, an area of interest for Dean Dorton, according to its chief executive. The merger will be effective Jan. 1.
In a common development, Dean Dorton’s CEO also announced that Massey’s president, Philip Massey, would take charge of Dean Dorton’s software division. With the focus being on the improvement and increase in the software solutions to be provided by Dean Dorton, it is a natural development to have the expertise of Massey’s chief officer leading that vital department. A merger is likely to succeed more often when the purchasing company conducts a large amount of due diligence in finding out the deepest details of what it is acquiring. The legal procedures and mandates involved in typical mergers and acquisitions in Tennessee are similar to the procedures in other states.