You feel excited by the idea of merging with another business in Florida, but how sure are you about your compatibility? There could be dark clouds gathering on the horizon that you have yet to notice.
See which signs Inc.com says spell disaster for a business merger. Know whether you need to pump the brakes to avoid an unnecessary fiasco.
Opposing business models
Do you and the business you want to merge with have similar ways of doing business? For instance, do you have the same values, the same vision, the same business practices? While it is fine to evolve your current business model through a merger, you could run into trouble if you feel you have to reinvent your model into something different.
Conflicting company cultures
Merging with another business should feel like coming home, not like stepping into a stranger’s house. Your company cultures should have more overlap rather than pieces that do not fit together. Also, your employees benefit from merging with a company whose employees feel more like old friends rather than awkward acquaintances.
Muddling the unification
During the integration phase of the merger, the acquired business must either remain unique in its organization or fully assimilate into the acquiring firm. Usually, anything that deviates from the two can create sparks.
Displaying indifference during on-boarding
Employees are essential to a merger, which is why it is crucial to show them proper respect during the merger. Give all employees a space to voice resentments, complaints or comments regarding the merger. Then, take action on remedying the situation. Any displays of insensitivity or disrespect could make employees want to take their talents elsewhere.
Perform the necessary due diligence for your merger. A little digging could uncover poisonous roots that threaten the future of your business.