Welcome to Virtual Merger

  The term "Virtual Merger" describes the relatively recent phenomenon of companies entering into contractual arrangements that are functionally, but not legally, equivalent to actual mergers.  While popular in Europe for years now, its starting to gain traction in the U.S.  The companies may, for example, share a pool of assets, combine IT, or back-office support functions, consolidate product lines, or share real estate space.   NON-BINDING   Virtual Merger agreements aren't usually legally binding.  Although both parties sign operating service agreements, the companies remain legally independent, each with its own shareholders and directors.  Virtual Merger agreements typically allow either party to terminate the agreement after a specified time period or if the agreed-upon purposes of the virtual merger isn't met.  

 A Virtual Merger serves several strategic functions:  They can help you reduce costs, increase efficiencies, raise market visibility and gain access to your partners resources.  In the case where a business owner wants to begin their exit strategy, and sell their business, a virtual merger can be a great way to increase value.  A bigger chain company will look more at a multi-unit business doing more overall revenue than a one unit location.  By Virtually Merging the business together under one umbrella, you can quickly increase value, without the costs and legalities of an actual merger.