For those looking to build and grow businesses in Rochester, merging with another company may seem like an attractive option. Business leaders across the world in engage in such talks every day, as evidenced by the fact that the Institute for Mergers, Acquisitions and Alliances reports that as recently as 2015, there were over 44,000 of such transactions valued at over $4.5 trillion that occurred worldwide. The increase in actual as well as intrinsic value (not to mention market share) that can come with combining with a competitor may have many thinking that such a move is a no-brainer. However, such transactions can easily prove to be too complex for people to manage.
Information provided by Forbes Magazine offers advice on how to successfully manager a merger. Its recommendations include:
- Carefully consider internal reporting lines to avoid too much tension from developing between the staffs of newly combined companies
- Pay extra attention to the time and resources needed to merge financial management systems
- Keep employees updated regarding changes and have the short- and long-term goals of the acquisition clearly defined
- Have a plan in place to deal with the initial upheaval and turnover
- Focus equal effort to retaining current customers as is given to entering new markets
Of course, there will be scenarios when pushing for a merger may not be the easiest pathway to growth. Prior to considering such a move, many experts recommend that management teams first look to bolster their internal research and development to increase to their own capacity. In other cases, it may be more prudent to share resources through a strategic partnership or alliance rather than move to make a full-scale merger.