How to Manage two companies with diffferent investors?


0

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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asked Jul 15 '11 at 06:25
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Faisal Ali
11 points
  • Your title doesn't match the question.. How does it affect what you're asking that the companies have different investors? – Tomeduarte 9 years ago
  • Do all investors/partners want to remain as such? – Alphadogg 9 years ago
  • I guess my question should have been "How to Manage/ merge two companies with different investors? – Faisal Ali 9 years ago
  • alphadogg - non of the investors what to leave if that is your question. – Faisal Ali 9 years ago
  • Your A, B, C, D's don't add clarity or simplicity to your question like you may have intended. – Joel Friedlaender 9 years ago

1 Answer


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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.

answered Sep 25 '11 at 11:50
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John
1,194 points
  • I would look at the outsourcing route – Susan Jones 8 years ago
  • 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 8 years ago

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