Recently, we used this space to present a few ideas on how to avoid the pitfalls that could stall, slow, or even destroy merger activities. As a follow up to that discussion, we are presenting a few ideas you might find helpful in maintaining a smooth transition and integration following a successful merger.
Moving Forward After the Merger Requires a Plan
Once the contracts are all signed, the handshakes take place, and the deal gets done, it may appear that the merger process has come to a successful completion. Some might say, however, that the hard work is just getting started. Managing the marriage of two companies and their individual operations, even if they do business in the same or similar industries, will require a great deal of thought, competency, and attention. Here are a few things to keep in mind that may help smooth the transition process:
- Set sensible and realistic goals for the post-merger integration time period. There is bound to be some lag in productivity while teams get to know each other and work to coordinate their operations. Maintain firm, yet steady management to help guide the new company through the rough waters of transition.
- Install proper and adequate resources needed to ensure a smooth transformation from multiple operations to a single enterprise. Providing personnel with the IT, HR, financial, and cultural support necessary to do their job will save everyone time and money.
- Retain the top talent. Keeping the key and most productive people on board following a merger is critical to both a smooth transition and subsequent success. Do what it takes to keep the best people on board.
- Mergers often cause anxiety among the employees of the absorbed company. Be open and honest about the corporate intentions moving forward. Making vague or unrealistic promises will create more tension in the long run.
- Do not delay in making important decisions. It is best to complete thorough deliberations prior to making announcements, but unnecessary delays will cause distractions and cost money.
Seek the Legal Help of an Experienced Santa Clara County Business Law Attorney
When the time comes to grow and expand, it is only natural to search the landscape for suitable merger opportunities. Missteps and delays can result in lost time and money and can even cause the collapse of ongoing negotiations. An experienced Silicon Valley mergers attorney can provide the type of counsel your business needs to successfully navigate the complex nature of business mergers and acquisitions. Call SAC Attorneys LLP at 408-436-0789 to set up a free initial consultation and discuss how our knowledge and resources of California business law can support and expedite the successful merger and acquisition activities of your business.