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Merger process
The evaluation and negotiation of a merger are a major businessdecision. Each merger situation is different, but most successfulmergers involve the some basic steps.1.Informal discussion2.Formation of a steering committee3.Determining a calendar of events4.Formal feasibility study5.Negotiating the merger agreement6.Membership approval7.Implementation of the reorganization.
 
Step 1-Informal Discussion
 
1.The first step of the process involves an informal discussion bythe board of directors.2.The board should consider the history of the cooperative, the present status, and, above all, what the cooperative should do tosurvive, prosper, and meet members’ needs.3.Some factors to consider at this stage include:• 
How well do the business activities match the cooperative’s core areas?•Do the trade areas fit together or side-by-side?•Is the merger partner a viable, on-going concern?•Does the potential for merger merit a formal study?
4. This stage of the merger process generally ends with the board’s passing a formal resolution to investigate a merger.
 
Step 2-The Merger Steering Committee
When the informal study and discussion by the board arefavorable, the next step is to appoint a steering committeecomposed of board members from the two cooperatives.
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