According to a Harvard study, approximately 90% of mergers fail. It is alarming, especially considering the costs involved in a merger and acquisition project. The last thing you need, as an entrepreneur, is to invest in a project that is almost doomed to failure.
Yet, while 90% fail, 10% succeed. So, it seems unfair to assume that every merger will collapse. If you are in a position to buy a company and expand your business reach, you need to surround yourself with experts who can guide you through the many strategic steps. Indeed, experts are the main differentiating factors between mergers that fail and those that thrive.
Legal advisors
Whether you are considering a joint venture in a new region or the purchase of a company, you want a professional law firm experienced in commercial and business transactions, such as Accuro Maxwell. Indeed, business law is complex. Therefore, misunderstandings could dramatically affect your rights and finances as a business. Things can get even more difficult if you reach out to an international business, as knowledge of the language or eventual local regulations could completely transform the deal!
A white-labeled solution provider
White-labeling enables a company to hit the ground running with a solution that is completely fit for purpose and integrates with its existing tools and technology. More importantly, white-label solutions are unbranded, which means that each business can add its unique logo and branding design. As it is often the case in a merger, companies may want to maintain their unique brands to preserve their audience groups. Yet, simultaneously, both parties may need to use the same technology for obvious cost considerations. A white-labeled product can be implemented safely into each business, ensuring data can remain visible without causing branding confusion.
A shared HR platform
Does it make sense to bring all HR services together? The answer is yes, even when businesses may have different policies, such as varying days off allocations. Maintaining separate HR departments can prevent integration and create disparities between the teams. If the merger is designed to have all employees cooperate and work together as one big team, they need to share the same HR benefits.
This could include creating a brand new HR culture to reflect on the merger:
- Same days off allocation for all
- Matching wages across the board for similar roles
- A point of contact for everyone for HR requests
Email system and collaborative platform
It is important to unify communication tools across both teams. This may involve switching to a single email system, for instance, if one team uses Outlook and the other Gmail. It can be helpful to introduce a transition period if only one team has to change and move to a new system.
Team building strategist
After a merger, employees need to get to know each other and build meaningful connections. Working closely with a team-building specialist who can create programs to bring everyone together can be a game-changer. It can be helpful to identify employees who are most likely to work together in the future and focus on creating productive connections between roles, rather than throwing social events for the company as an ensemble!
From merger zero to hero, expert advisors and tools can be crucial to building a shared path to success after a merger. The lack of communication between the two businesses and teams is the number one reason for a merger collapse.