Mergers and acquisitions, also referred to as M&A, are typically complex transactions. In some cases, the contractual documents can be hundreds of pages long, although your agreement may be shorter if your business is small. Mergers and acquisitions are often effective ways for small businesses to gain entry into new markets because the other company involved may already have access to these markets.
Putting a price on an existing business can be difficult when the company is privately held. While a public corporation can establish its value by analyzing what investors are paying for its stock on the open market, a private business does not have this luxury. Since private businesses do not typically publish sales information, it may also be hard to find information on other businesses of the same type that have sold recently as a basis for comparison.