Donnelly Ritigstein Law Offices
Call for a Free Consultation
Toll Free 866-907-6368 Local 856-324-6147

Corporation's acquisition of competitor changes discount market

The term "evolution" is something that many New Jersey students learn about in school. While it is often addressed in a scientific context, evolution can also be explained as the deliberate change from something simple to something complex. Evolution happens in the business world and may be responsible for one large corporate acquisition currently occurring between two American retail giants.

The discount chain Dollar Tree has agreed to purchase its competitor Family Dollar for more than $8 billion. News reports indicate that Family Dollar has fallen behind other businesses in its industry, including its purchaser and the Wal-Mart Corporation. Though its chief executive officer has tried to avoid selling his company in the past, the time has come for Family Dollar to fall under new corporate ownership through a complex business transaction.

Corporations frequently merge, split and acquire each other in the ever-competitive business market. Buying a company can be an involved process as managing executives, investors and shareholders must weigh in on whether such a fundamental change is necessary to the entity's structure. In many cases such change is necessary to keep stores open and employees in jobs, paralleling the changing structure of the company to that of an organism evolving to survive its environment.

Just as it is with creatures in nature, not all companies survive on their own. Some die out because they choose not to adapt while others recognize the need to be malleable in order to continue to exist. Mergers and acquisitions facilitate the evolution of corporations in the business world, and individuals who have questions about how to evolve their companies may wish to speak with attorneys who practice business law to learn more about their options.

Source: Bloomberg Businessweek, "Dollar Tree Agrees to Acquire Family Dollar for $8.5 Billion," Selina Wang, Beth Jinks and Cotten Timberlake, July 28, 2014

No Comments

Leave a comment
Comment Information

Moorestown Office
212 West Route 38
Suite 200
Moorestown, NJ 08057

Map & Directions

Haddonfield Office
132 Kings Highway E
Suite 105
Haddonfield, NJ 08033

Map & Directions

Linwood Office
327 Central Avenue
Linwood, NJ 08221

Map & Directions

Cape May Court House Office
618 Route 9 South
Cape May Court House, NJ 08210

Map & Directions

Gloucester, Cumberland and Salem County Offices
57 Euclid St.
Woodbury, NJ 08096

Map & Directions

Back To Top