Maryland's malls and shopping centers are filled with a variety of stores catering to a wide array of consumers. Some stores target the young, urban teenager while others target the chic executive. Oftentimes, retailers are in competition for the same business. Recently, Men's Wearhouse expanded by buying a business well-known to many retail consumers.
Jos. A. Bank is a men's clothing store that originated in Baltimore. Last fall, they pitched an offer to buy Men's Wearhouse, based in California. Shortly after Jos. A. Bank's offer was rejected, Men's Wearhouse countered with an offer to buy Jos A. Bank. After months of negotiating and strategizing, a mutually agreeable deal was reached. These two retailers have been industry rivals for a number of years.
After years of competing for the same customer, these two retailers will continue their competition; however, this competition will be slightly different. Rather than true competitors, they will be sister companies working together. This deal, which totaled $1.8 billion, was viewed as a positive move by shareholders of both companies. Stock prices for both companies rose following the merger announcement. It was evident that stockholders approved of the merger.
While the majority of Maryland transactions related to buying a business may not consist of this large of an investment, they are still important to all parties concerned. There are often many financial and legal issues that must be considered and negotiated. However, with proper planning, guidance and professional assistance, the transaction can prove to be a positive move for all involved.
Source: The Washington Post, Men's Wearhouse finally buys Jos. A. Bank, Amrita Jayakumar Postpartisan, March 11, 2014