"A (permanent) merger is not the solution to a temporary problem. A merger must be based on real and perceived expectations of gain. Be diligent in asking the tough questions. 'Extreme reluctance' may be the best frame of reference to assume before you agree to surrender your independence. - Weigh the net monetary value. As in wood working - measure twice, cut once. - Evaluate the gain in business acumen against the loss of free rein. - Calculate the increase in depth and breadth of operational reach. - Be mindful of changing market conditions and the ever increasing need for improved customer solutions. - Don't underestimate the diminishing returns from the pressures of economies of scale."

By Kevin Spafford of Legacy by Design Excerpted from "Seven Important Questions Regarding a Merger" Northeast Dealer - the publication of the Northeast Equipment Dealers Association (November 2007)

For more information, we invite you to download our related Planning Tools: Merger Candidate Interview Guide and Merger Candidate Evaluation.