Few tasks are as challenging or potentially lucrative as mergers and acquisitions. From buy-outs to new partnerships, melding two companies can be a challenging time for everyone involved. Thankfully, there are ways to ensure a merger goes smoothly and allows your new company to continue to grow and provide industry-leading products and services.
First, you need to determine what state your financials are in. The liquidity and capabilities of your company will be put to the test with a merger or acquisition, so identify any weak points in your capital structure. Consider taking out a loan, applying for lines of credit or liquidating inventory to ensure you have sufficient funds for any predicted or unexpected costs associated with the merger.
Be honest in assessing the talents and skillsets of everyone in both companies. A merger is more than putting two brands together, it’s also about joining two teams together. Discuss how each team will bring their work together and focus on the same objective. Whether one company is buying the other or both teams are coming together on equal ground, it’s essential that communication, respect, and teamwork are liberally applied.
Why did you embark on a merger or acquisition? Although the goal may be obvious at the beginning, it’s easy to lose track of your overall goal as you get into the gritty details of an acquisition. Help your team continue to remember the larger goal of this process and how they can benefit from the experience.
Mergers and acquisitions are great times to refocus and rebrand your business. Whether you stick with the name of your original company or use this opportunity to meld the branding of two popular companies, your marketing team faces a set of unique challenges as you aim to keep loyal customers from both companies.
Remember to carefully monitor the security of your company throughout this process. As teams are combined, large amounts of financial information and trade secrets are being shared. Some employees may be let go, while others will be trained in new areas. Keep your information secure and safe as you grow your business through a merger or acquisition.
Finally, don’t be afraid to demand the best from your leaders. Mergers and acquisitions are designed to create an industry-leading brand, so expect the best from your leaders. Carefully choose managers and business leaders who inspire loyalty, encourage productivity and help two companies come together seamlessly and with less stress.