Companies in California may wish to merge with others in the state or elsewhere to increase market share or meet other goals. Generally speaking, businesses involved in a merger have similar products or those that fit well with what the other provides. However, this is not always the case. The first step in the merger process is to propose an operating structure and present it to each company’s board for approval.

If the board approves of the plan, shareholders will also have to approve of the proposed merger. Depending on the complexity of the merger, it could take several weeks to years for it to officially close. Mergers involving domestic entities combining forces with foreign entities tend to be the most complex and take the longest to complete. However, there is no way to predict how long a given merger will take to become official.

This is because other factors such as the need to get regulatory approval could slow the merger down. It is also possible that shareholders won’t agree to a proposed merger and that it will need to be revised. Shareholders are primarily concerned about getting maximum value for their shares and retaining ownership in the new entity that is created. The tax implications of a merger could also play a role in how long it takes to complete.

When buying a company, it is generally a good idea to do as much due diligence as possible. The due diligence process may be facilitated by an attorney or by other financial or tax professionals. Thorough due diligence may make it easier to craft a deal that will obtain approval from shareholders and regulators. Ultimately, it may allow for a merger to be completed in a timely manner.