Company mergers have been a long-time strategy to help extend a company’s reach into various market shares and gain new segments of the industry. When two companies decide to merge together into one official company, they can become big enough to take over a large part of any industry. If your company is considering merging with another, here are four factors that you’ll want to consider first.
How You’re Going to Alert Your Customers
One of the biggest struggles that businesses tend to have when they undergo a merger is simply not having a plan of attack for how they’re going to let everyone know. Your customers are going to need to know what’s going on from the very start. You should have a fully-laid out plan of attack for letting them know about the merger. This should include information before the merger happens and follow-up information afterward.
When mergers are rumored to happen, it makes those in executive-level positions weary. It can cause them to seek employment elsewhere in fear that they would lose their job if they stayed. Keeping your employees comfortable with the merger is a must. You should clearly define what executive positions are going to be filled and by who. By informing employees of their position changes or that they still have a solid job after the merger happens is a must to keep your employee retention levels high throughout the entire transition.
Have the Legal Paperwork Drawn Up Way in Advance
Your corporate lawyer should be working alongside the other company’s lawyer to draw up the right legal documents for the merger. It’s important that you have these legal documents drawn up very far ahead of time so that you can properly read them over. You don’t want to end up still in debates within the last couple of days of the merger. It will cause thoughts of doubt and lead to the possibility of the merger falling through. Instead, get them done ahead of time so that both parties are happy with the merger terms way before the date the merger is set to happen.
Bring in a Consultant
If you don’t have any senior managers who have undergone a merger before, then it’s time to hire a consultant. This way, there is someone to go to who can answer questions and help instruct these senior managers on what their role is for the merger. Without having a guiding light of experience, even the best thought out mergers can end up in ruins.
Preparing for a company merger is a big step for both parties. The above are four great ways to help you through the merger successfully. Just remember that preparation is the key to any successful company merger.