How Do Company Mergers and Acquisitions Impact Your Investments?
Mergers and acquisitions are key business activities that bring substantial changes to companies — for both employees and customers. But workers and buyers aren’t the only people who are primarily affected by these changes in leadership and structuring at companies undergoing mergers and acquisitions. If you’re a shareholder of a company that’s participating in a merger (or acquisition), you might expect to see some impacts to your investments due to these business activities.
Mergers and acquisitions can be understandably concerning if you've built segments of your portfolio around the stability of a certain company. It’s common to invest in companies for strategic reasons, and mergers and acquisitions can upend those strategies and require some careful consideration. If you’ve invested in a company that’s announced plans for a merger or acquisition, it’s essential to understand what you can expect from this transition — financially speaking — and how you can adapt your investment strategies to respond to these changes.