Managing a merger
Companies merge all the time, and the reasons vary. Some may “have their eggs all in one basket,” or too much of its business in one area, and seek to diversify to reduce risk. Companies may seek a solid company to acquire it as an alternative to bankruptcy or closure. Other firms — especially in the manufacturing space — could need a merger to cut the cost of doing business. Here are some things to keep in mind during a merger upheaval:
Carefully evaluate both company cultures.
You must evaluate both cultures before you can just expect them to mesh, says global merger management consulting firm McKinsey & Company. The first step in syncing company cultures is to evaluate each on their own merits. Culture — “the way we do things around here” — can be a real obstacle to successful integration,” the firm states on its website. Look at every dimension of both company practices to gauge compatibility “even before deal announcement,” the firm states.
Be patient, and ready for surprises from clients and competitors, says Billy Hennessey in an article at Forbes.com. The merger will take longer than you expect, he says. “You can't put former competitors together and expect them to get along from day one. They're used to thinking of each other as the enemy,” he says. He also warns that merging companies are vulnerable to competitors trying to gain a better foothold in your market and customers more aggressively looking for deals.
Know that workflow will suffer.
F. John Reh, in an article at Management.About.com, says managers need to realize that some people will leave the company during a merger, and others will be less productive. “Give yourself and your department time to work through the changes,” he says. n
WBJ Web Partners
Most Recent
Most Recent
0 Comments