Successful mergers and acquisitions don’t just happen — they are the result of careful timing and strategy. In most cases, you will need dedicated professionals by your side to optimize the process, but you should always know the basics for yourself.
You are the final decision maker no matter how many consultants you have on hand. Here are our top 4 tips for ensuring a successful merger.
The executive suite of the acquired company has more power than you think, because they are the ones who really control the outcome of the merger.
Come to the table with a spirit of collaboration and fairness in order to quell any bad blood that could come between the deal. If you come with an “us versus them” mentality, most mergers are failed before they ever begin.
Mergers often do not happen on the basis of similar cultures — they are created based on financials. However, the continuation of financial success is often contingent upon the melding of the two cultures. Each side will have its way of doing business and methods of communication.
You must find ways to blend best practices, or all of that financial due diligence may go down the drain.
And speaking of culture, you must let people know the truth about their jobs. Redundancies and overlap are an issue, and the sooner people know the truth, the more smoothly your merger you go.
If you are in the position of acquirer, the acquiree is correct to have questions about any previous reputation you bring with you concerning past mergers. If you have history, be up front with this information.
Invite your current acquiree to talk to your past merger efforts. If you score good marks on your past assessments, you can close your present deal much faster.
Regardless of all the collaboration talk above, the number one way to ensure a successful merger is to be unafraid to walk away at any moment if the deal isn’t to your liking.
Because your side of the table is already being transparent and forthcoming, you have every right to create a deal that is advantageous to you.
If the other side does not see it that way, then you should not be afraid to walk. Most importantly, the other side of the table should know that you are never afraid to walk.
Murphy Business has been handling the detailed nuances of delicate mergers for decades. If you are looking for the right team to make your merger work, then you owe it to yourself, your team and the team across the table from you to look us up.
Let us handle the details so you can focus on the strategy to build your business.
We are ready to help you — just give us a call at (727) 725-7090 or fill out our easy contact form.