The mergers and acquisitions process is rarely a simple and straightforward one. Executives will be confronted with new tasks and responsibilities, and employees on both sides face their comfortable, familiar company culture shifting and changing. Many may fear for their job security. At the Law Offices of Levi Williams, P.A., we are aware that consumers are also affected during mergers of Florida companies. It is important that you understand the different facets of a merger, so you can avoid the worst of the hurdles while the dust settles.
Merging companies is often seen as beneficial for the companies involved, so you might wonder why customers often become nervous when an imminent merger is announced. According to the Houston Chronicle, changing a company’s culture and known brand may shake up the trust of loyal consumers. They may worry that the outstanding quality or customer service of a brand they have grown to love and trust may dramatically change. They could be concerned that merging companies can result in a lack of variety or choice in the products or services you offer. Understandably, they could also worry that their costs will increase, especially if you specialize in a service they cannot do without, such as health care or auto insurance.
When you understand how an upcoming merger can make your consumers nervous, you can take the steps to reassure them. If a price increase is unavoidable, you might send out a notice explaining the reasons for the increase and assuring them that your services will match or exceed the quality they are accustomed to. In fact, preemptive communication with your customers during the merging process may secure their loyalty, trust and even excitement about the changes.
There are numerous aspects to merging companies that require professional handling and strategizing. Our corporate law page explains more on this topic.