People may love running their own company, but it sometimes makes sense to merge, sell or acquire another business. It may be a matter of pairing two companies in the same market to have a commanding presence. It could be a matter where the two entities have complimentary assets that spur an expansion of goods or services it offers. Growing pains can happen with the best mergers, but having the right approach can minimize these issues.
Don’t fight it
Owners or executives may believe they can do it independently, but change is a part of any business climate. It is often healthier and smarter for the companies to work towards a solution rather than fighting something that is out of your control.
Discuss human resources
There will be a lot of anxiety among the staff of both operations about what will happen. Some may leave, and others let go, so addressing these matters transparently and on a case-by-case basis is vital. There should be discussions about key employees who can help maintain sales, leadership, and stability during this time of transition. It may be a matter of offering new positions if their previous one is no longer available.
Pay attention to money and finances
It can mean making sure the deal goes through at the agreed-upon price, but it also means making certain bills are paid, new lines of credit are established with vendors, and watching the sales team who may be trying to retain customers unsure about the changes. Settle all accounts before they are closed in favor of new ones.
Pay attention to the company culture
Those coordinating the deal should consider company cultures before closing, but things sometimes go differently than planned. It is wise to consider what made each company successful, especially if they were competitors, and benefit from these fresh ideas.
Rather than spreading negativity, being open to change is more constructive. It could be a different way of doing business, working with new people, and other growth opportunities. Success amid change can lead to a brighter future.
Have a contingency plan
Things always go differently than planned, and mergers have countless variables. Whether it is an owner thinking about a golden parachute, a manager unsatisfied with a new role or a salesperson unhappy with their manager, it doesn’t hurt to look around and see what could be next. If things aren’t working out, execute that exit strategy.