Ralt's 1988 Formula 3000 car was proving a challenge to develop; the works drivers' backers (for the first time, Tauranac was running paying drivers rather than paying his own) encouraged them to leave the team and not pay up; the company was also suffering from loss of its American markets for RT4s (Swift were upping the stakes dramatically) and RT5s (SuperVee was on its last legs in the US as a major category). Reynard's aggressive marketing was cutting into the F3000 and F3 markets. Tauranac was looking to sell the company and ultimately ended up selling out to March for just over a million pounds; they had concentrated on high-value bespoke racing cars and allowed their customer cars to atrophy so the merger appeared to be a good move.
