Small business mergers can seem like a great challenge – but with the right partner, adopting a new culture and paying attention to your employees, success is at your doorstep. Here are some ways to navigate your next business merger.
Getting to know who you are going into business with is key to understanding and smoothly navigating your company post-merger. It’s crucial to vet an individual before beginning a merger to make sure that you are safe and sound in your partnership. Diving in headfirst with someone who seems like a perfect fit can rear its ugly head in the long run.
Start off by asking for references from previous business partners or employers to get a feel for how your future partner acts in a business setting. Next, talk to their employees and clients to see how they behave as leaders and as business owners. Read reviews and listen to employee anecdotes to better evaluate how this individual treats others in a business environment.
Understanding the culture of the company you are merging with is just as important as getting to know your partner. Is it relaxed and more laid back than your business model? How do they conduct meetings? Take a look at their books to see if any abnormalities present themselves. In order to avoid reshaping your company to fit your counterpart, look for a company that is responsible and trustworthy.
Employees Are First
It’s crucial to explain to every employee why the merger is necessary and for the benefit of your business. If every employee is not on board with the merger or unaware of its purpose, it will create turmoil in the long run. Find out what works well for them instead of asserting a new way of working. First and foremost, ensure that both your customers and your employers are happy to enable a smooth operation. Adopting a new way of working is difficult and a hard transition to make for everyone, so taking it slow and paying attention to your employees’ reactions and behavior can make the world of a difference.
Hire an attorney
When it comes to merging small businesses, hire a small business lawyer to fix any gaps and tie up loose ends you may have missed in the paperwork process.