Ensure a Seamless Business Merger with These 5 Tips
There are many ways to grow a business, and one of the most common ways is with a business merger. A merger is the term for when two independent companies join forces while still maintaining their original, separate identities. This type of business venture is common with large companies, but not as much with small, mom-and-pop-type businesses. To ensure your business undergoes a seamless transition with a partner, follow the five tips below:
1. Plan Everything Out Ahead of Time
Combining your business with another one takes an enormous amount of planning. Before the plans are set into motion, it is extremely important to have everything planned out regarding every aspect of the business operations and culture. Businesses often call this aspect of planning an integration plan. Integration plans are usually organized in 30, 60, 90, and 180-day increments.
2. Keep All Stakeholders Informed
Your stakeholders are arguably one of the most important aspects of your business. To keep them all happy, make sure to communicate to each stakeholder group the reasons for the merger, as well as the value it will bring to each stakeholder and how much it will cost them. If your stakeholders each contribute to the transition, you are likely to have a more integrated, streamlined process.
3. Assemble the Perfect Team
The perfect business team requires proper leadership and a capable operations team, including information technology (IT), human resources (HR), marketing, and operations. Your IT team will be responsible for integrating all the network operations with the other company, while your HR will handle combining the database of employees. Marketing and operations will play a big role in getting the news of your company’s growth out to your business network.
4. Evaluate your Financial Capability
Although a merger isn’t just a financial transaction, it is important to recognize your financial capability before the business deal is fully executed. Part of your financial capability includes your liquidity above profit-and-loss statements. To make sure your company can participate in a successful transition, be sure to confirm that you have enough liquid assets to sustain this type of investment.
5. Utilize Employee Feedback
Many employees who get caught up in the middle of two companies joining together worry if they’ll get a say in how business is done. To ease their fears, keep employees on both sides as involved in the process as possible. Keeping employees in the loop will make for happy workers and a smooth business transition.