Quick Takeaways

Quick Takeaways

  • “A merger occurs when two separate entities combine forces to create a new, joint organization.
  • An acquisition refers to the takeover of one entity by another.
  • The two terms have become increasingly blended and used in conjunction with one another.”

Source: Mergers & Acquisitions: What’s the Difference? (Investopedia, Apr. 30, 2021)

Mergers and Acquisitions, often referred to as “M&A”, is the set of terms used to describe the consolidation of companies, stocks, offices, and other assets. In real estate, this can mean anything from the buying out of huge firms to the merging of offices local offices.

Real estate mergers and acquisitions often occur between large firms, and certainly make waves in real estate world.  The COVID-19 pandemic put a pause on so many sectors of real estate, and M&A has continued to rebound and recover, now dealing with an unforeseen real estate market.

Due diligence is a term for the process of taking the assumed steps and doing the reasonable amount of research before entering into various agreements, especially when purchasing or selling. Due diligence in real estate is important especially when purchasing a property or business.

Whether you are forming a completely new business, merging, or acquiring, choosing the type of corporation you will run is extremely important. Selecting the corporation type, for example an S Corps or LLC, is one of the first steps you will take to solidify your new venture as an official business.

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