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Tips for managing a successful business merger

On Behalf of | Jan 18, 2016 | Mergers & Acquisitions

When bringing two companies together into one, Florida entrepreneurs and business leaders will have many challenges to face. Investopedia notes that a large number of mergers, especially those involving larger companies, are not ultimately successful. The tendency to underestimate the impact of consolidating operations is understandable but it can also be avoided with careful preparation.

Executives and owners should first and foremost be clear about their reasons for engaging in a merger. Fears related to new competition or other market forces are not good reasons in and of themselves to merge. Neither is the hunt for stardom among a certain industry. There must be solid business needs that lead companies to merge into a new entity.

People heavily involved in merger activities should also take caution to avoid ignoring the day-to-day business operations. When this happens, new problems can enter the scene where they were previously no issues. This will only add to the stress and challenges of making the merger work. Forbes also adds that when a merger happens between two prior competitors—which is commonly the case—leadership teams should be continually on the lookout for signs of division. Teams that are used to being enemies do not become friends overnight. It will take time and clear direction from above before everyone who remains with the new company is truly on the same team.

One thing that can help blend employees in a newly merged business is if the two original companies shared similar values and cultures. The less disparity there is to overcome, the greater the chance of success.

 

 

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