Global Location Numbers Role In M&A
GLNs serve a critical role in the identification of legal entities and physical locations associated or named in a merger or acquisition. This post provides guidance on how to treat GLNs in the event of a merger or acquisition. The phrase mergers, acquisitions and divestitures (abbreviated M&A) refers to the buying (acquisitions), selling (divestiture, also known as divestment or divestiture) and combining (merger) of all or part of different companies or businesses. M&A’s are normally executed to aid, finance or help a company grow rapidly in a given industry. Whether a purchase or unification is considered a merger or an acquisition lies in how the purchase is communicated and received by the target company’s board of directors, employees and shareholders.
Both the Buyers (companies who are acquiring or merging with another company or business) and Sellers (companies who are being acquired or merging with another company or business) will benefit from the use of a comprehensive implementation guideline outlining activities, processes and best practices required during a M&A with reference to managing and communicating GLN and supporting data with their trading partners, e.g. manufacturers, distributors, hospitals, pharmacies. They will need to work towards integrating the acquired company, division and/or products into the buyer’s portfolio with minimal impact. Issues to address are who maintains the right to use the GS1 Company Prefix(es) and the GS1 identification numbers (e.g. Global Trade Item Numbers (GTINs), Global Location Numbers, (GLNs), Serial Shipping Container Code (SSCC)) assigned using the GS1 Company Prefix, when ownership of the product or company changes. Also important is how these changes are communicated with all their trading partners and GS1 Member Organizations (MOs) that licensed the GS1 Company Prefix or GLN.
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