In Denver, there are times when companies need to consider making bold moves to achieve their business goals. That can mean altering the corporate strategy, looking into mergers and acquisitions and making significant changes that are meant to improve prospects for the long term. In all types of business transactions, especially complex deals like stock purchase and sale transactions, it is imperative that everyone involved understands the reasoning behind the decision and works toward making it a success.
Level 3 Communications purchased TW Telecom in a deal involving $5.7 billion in cash and stock. The combined companies, with almost 4,000 employees in the state, have long been rumored to be considering a merger. The reach of the company is expected to grow exponentially with the announcement of this deal. The two companies are considered a fit because Level 3 has global reach and TW Telecom is respected for its technology. Stock prices of the company improved as the deal was announced and the merger is not expected to meet resistance from government regulators.
Nothing can sabotage business goals faster than a mistake when it comes to the legality of a corporate strategy. Many different and complex aspects go into running a business,, and it's important to be prepared for every eventuality.
For Level 3 Communications and TW Telecom, the merger appears to be an ideal fit for both sides as they will combine their skill sets to grow both companies. Whether it is businesses as large and well-known as these companies or the small business that's just getting off the ground in the garage, one of the most overlooked aspects is being prepared for the legal aspects of a business deal.
Source: Denver Business Journal, "Level 3 and TW Telecom, the telecom deal everyone saw coming," Greg Avery, June 16, 2014