This article was submitted by Greenaway Scott
A successful corporate merger can bring vast benefits by strengthening two or more businesses and creating a superior offering for the client.
However, if handled incorrectly, this joining of two businesses could be transformed into a logistical nightmare, which is ultimately detrimental for both parties.
Avoiding this merger-style meltdown can be simple when certain steps are employed from the start.
Obviously, speaking with business advisory experts should be prioritised at an early stage, to ensure the smooth integration, and to iron out any potential issues before they are exacerbated.
The first step is to ascertain that both companies have shared business goals and objectives. Is there anything you disagree on? Do you undertake different practices in relation to similar areas that could cause friction? These are questions that directors should pose from the initial discussions to identify whether the merger is in the best interests of both companies.
As a professional entity, due diligence is essential to ensuring your company’s continued success after the merger. Carrying out this audit-style investigation of the other company’s finances, legal issues, clients, and strategies, will allow you to be better prepared and ultimately help to inform your decision going forwards.
Office culture is also an integral factor to consider when bringing together two teams. Many may have worked at their organisation for a significant period of time, and have established particular ways of working. As such both teams need to communicate frequently and openly from the start to establish an integrated and successful working relationship.
Ascertain your company’s future goals and aspirations. What do you hope to achieve jointly after the merger is completed? Are you looking to attract a new client base? Expand into new areas? All of this should be shared with the company you are proposing to merge with to ensure you share the same vision.
Finally, a non-compete agreement should be discussed to safeguard the future success and growth of both parties. This will ensure neither can compete for the same business and inadvertently lead to competition and tension among the merged teams.