tailieunhanh - Franchising and Licensing Two Powerful Ways to Grow Your Business in Any Economy_12

Tham khảo tài liệu 'franchising and licensing two powerful ways to grow your business in any economy_12', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 318 FINANCIAL STRATEGIES of competing or complementary franchise systems are a viable strategy for responding to these pressures. Thus some of the most common reasons that franchisors consider a merger or acquisition with another franchisor or why nonfranchise companies consider franchise systems as viable acquisition targets include The desire to add new products or services to its existing lines without the expense and uncertainty of internal research and development The desire to expand into a new geographic market or customer base without the expense of attracting new franchisees into these locations or developing a new advertising and marketing program The need to increase size to effectively compete with larger companies or to eliminate the threat of a smaller competitor The desire for market efficiencies through the acquisition of suppliers backward integration or existing franchisees or distributors forward integration The need to strengthen marketing capabilities or improve the quality of management personnel There are numerous complex issues involved in the merger or acquisition of any company including both legal and business considerations. This is especially true for franchisors however who must address not only the potential issues related to taxes securities regulation labor laws employee benefits antitrust environmental regulation corporate governance bankruptcy and antitrust compliance but who also must understand the nature of the assets of the franchise system being acquired and the unique relationship between the franchisor and its franchisees. Franchisors that are considering their first acquisition must understand that the transaction is a process not an event. The management of the process the quality of the franchisor s team of advisors and a clear understanding of the franchisor s transactional objectives will all go a long way toward ensuring that the completed deal is ultimately a success for the franchisor its shareholders and the .

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