How to Manage two companies with diffferent investors?
I work for my father and his partner for one Home Health (company A) in city C which has been running for 5 years now. My father, me and a few other people have setup another Home Health company B in city B. This company B has certification for non-skilled work in city D which company A doesn't have. Company A has the non-skilled certification in City C. Now because I operate both business I would like for them to share resources like Billing and Payroll.
Basically I would like the non-skilled part of company A to go to company B so that we can operate them more effectively. (The non-skilled part of the company doesn't have to follow the strict requirement for being under the skilled part)
So Company A would be skilled only having a branch in city D and company B would be have a branch in City C. What would be the best way to set this up without being unfair on any of the people involved.
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Your title doesn't match the question.. How does it affect what you're asking that the companies have different investors? – Tomeduarte 13 years ago
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Do all investors/partners want to remain as such? – Alphadogg 13 years ago
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I guess my question should have been "How to Manage/ merge two companies with different investors? – Faisal Ali 13 years ago
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alphadogg - non of the investors what to leave if that is your question. – Faisal Ali 13 years ago
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Your A, B, C, D's don't add clarity or simplicity to your question like you may have intended. – Joel Friedlaender 13 years ago
1 Answer
The best way is for Company B to purchase Company A. This can be an all-stock transaction where the owners in Company A end up with shares in Company B and no cash trades hands.
You need to figure out the percentages, negotiation should help you here.
Another option is to have Company A outsource billing and payroll to Company B - this option would keep the companies as two separate legal entities.
Should actually be easy to do but you might need a lawyer to help you with the paperwork.
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I would look at the outsourcing route – Susan Jones 12 years ago
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Actually, operating 1 company is cheaper because you eliminate or reduce administrative overhead. If the ownership overlap between the 2 companies is significant (majority) merging via buyout is the cost-effective route. John, whould company A need to be dissolved or it still can do business as A but becomes a child company of B? – Webbie 12 years ago
