A business merger pulls the strengths of two companies together to open up a bigger share of the market. The two companies become one larger business. There are usually some growing pains when this happens.
One of the most important things to remember is that you need a solid merger agreement. All the terms you agreed to must be included in the signed contract to ensure you have the legal backing that might be necessary if they aren’t met.
1. Discuss human resources
People from both companies will likely have some concerns about what’s going to happen. Mergers usually allow some employees to continue working, but there’s a chance that others will be laid off. It’s best to handle these cases individually. Be sure that key employees are kept on board, even if they have to be offered a new position.
2. Watch the finances
The merging of assets and finances must be watched closely. The manner in which everything is to be handled should be discussed before the merger happens. Be sure to pay attention to any bills that came in for your company that should be paid by the newly formed company.
3. Watch the company culture
You can likely learn a lot from watching the other company that you’re merging with. This can give you valuable insight into various aspects of what made your former competition successful. Take note of those company culture differences and use them to benefit the new company.
Ultimately, you have to do what you can to protect your company. Making sure that you have everything in order for a merger is crucial. It may behoove you to have someone who’s familiar with these situations on your side so they can help you determine how to proceed.