Mergers or acquisitions are increasingly common both for large and smaller companies. They come in all shapes and sizes and can provide a boost each business to reach their strategic goals. These bring excitement and innovation for both sides but also come with challenges – financial and operational changes will likely happen, so it is essential to lay the groundwork to ensure these changes are sustainable and structures are put in place to support them.
During this high-stakes period, keep these following factors in mind:
From a buyer’s perspective it is important to understand the motives behind your decision to acquire or merge with another company. This will enable you form the nature of negotiation and begin shaping the structure of the deal. Moreover, this will help you build the narrative around the deal and better inform those involved in it.
From a seller’s perspective it is vital to build up a positive reputation and credibility – consistently create value for a potential buyer. Buyer’s will have their own ideas of what works and what does not, so ensure to discuss minimum acceptable requirements across the business and ensure these are taken into consideration during negotiations – this will guarantee a level of security for your company.
Employ the help of advisors
Getting through a merger or acquisition is a very challenging period, therefore it is wise to search out advice from people with more experience. Build a team that will help you ensure regular communication and transparency – during the transitionary period some have found it beneficial to employ the help of a transformation director whose goal is to guarantee a smooth transition. These are extremely experienced individuals who will provide you with the needed support as you continue to deal with other intricacies of this process.
It takes time
This process will not be easy, there will be a few missteps – do not assume the companies will immediately thrive in a new environment. Combining organizations will take time! There is a learning curb for both sides and they will need to find a way to merge their strengths in innovative ways. Take your time to really integrate the brands ensuring as a newly formed team you have the same goals.
Realistically speaking, even the “smoothest” of mergers have their hiccups, there will be disruptions. Keep expectations calm and considered, be thoughtful and don’t rush.