When two companies have qualities that could help them become a stronger entity, it makes sense to pursue a merger.
While this may make economic sense, the practical aspects of taking two businesses and combining their assets into one conglomerate are much trickier to master.
In this post, we will provide you a guide that will help you merge your company and another in the most organized manner possible.
1) Get advice from professionals
This tip is especially valid if you have not gone through a merger before. Meshing the capabilities of two companies is not an easy process.
While they may operate in the same industry and have similarities to each other, business practices internally can vary widely, and there may be a lot of redundancies in certain departments.
All of this can be overwhelming, which makes it important to consult with experts that have years of experience in mergers and acquisitions.
Firms like Generational Equity are companies that you should be looking for, as they are staffed with business consultants that can aid you through every step of this process.
2) Budget plenty of time for the transition
If you think that the process of merging two companies will goes as quickly as buying or selling a stand-alone business, then it’s time for a reality check.
When you acquire a company with the intention of merging the components of each together into one unified entity, there are going to be plenty of road blocks along the way.
The corporate culture in each company is likely to be different, so it will take time to bridge the gap between the teams on both sides.
The most emotionally difficult aspect of this period will be the elimination of staff that will be deemed redundant. There will be a lot of emotional grief that will be expressed, as you are dealing with human beings, and not inanimate office equipment.
All the chores that will need to be done before the two companies can truly be considered one will take many months to complete.
As such, it may not be the best idea to book a tropical vacation during this time, though you will certainly need one after it is all said and done.
3) Expect your employees to be fearful and distracted
In keeping with what was mentioned in the previous point, it is not unreasonable to expect your employees to fear for the security of their jobs in the wake of a merger.
This will manifest itself in a number of ways: some may be motivated to work harder to demonstrate their worth to the company, but others will be paralyzed in fear at the prospect of potentially losing their position, negatively affecting their productivity.
In the case of the latter, be sure to keep the lines of communication open so that you might identify those that are reacting counter-productively to the news of a merger.
While you can’t guarantee that anyone in your company will have their jobs several months down the road, you can help them focus in the moment.
You can also reassure them that should they find themselves on the outside in the near future, they will have great references and a generous severance plan that will help them make their transition to the next stage of their career.