How Can I Make My Business Merger Successful?

Mergers and acquisitions are some of the most difficult aspects of business to maneuver. This applies to both small and large businesses alike. There are so many details that must be aligned in order for the merger to be successful and prove to be an asset rather than a liability to either company. Here are a few tips on how to make your business merger successful.

Carefully Compare the Corporate Structures

During the planning phase of a merger, you need to spend adequate time evaluating and comparing the corporate structures of the two businesses that are gearing up to combine with one another. Details such as whether a company is corporate or unincorporated are a huge factor. Businesses that are unincorporated should usually fall under an acquisition.

Consider the Leadership of the New Company

This can often prove to be a sticking point with mergers and acquisitions. The leadership structure will have a huge impact on the ultimate success not only of the merger but of the new business entity itself. This particular detail can be filled with confusion and contempt especially if both owners of both companies intend to take charge of the new business. It’s often helpful to use legal aid or mediation in these types of discussions.

Think About How Finances Will Be Handled

Money is usually the driving factor for merging companies but business owners must remember to look at how finances can change on the most basic of levels. You should evaluate how the importance of tasks such as bookkeeping will be viewed, structured, and executed. According to Balance Everything, up to 21% of business owners admit to not knowing enough about bookkeeping. You should identify if there are deficiencies in areas such as this before jumping into a new routine.

Consider the Company Cultures

This is often a detail that is overlooked. While you're focusing on the very important financial, legal, and leadership aspects of a merger, you can’t forget to consider the more intangible issues as well. Company culture is something a hard thing to pin down and so it’s easy to overlook it or undervalue its importance. However, this is one aspect of a merger that will really determine how smoothly the transitions go. You should spend some time in both offices taking notes as to how company culture is in operation in each. Where will there be challenges? What things are already aligned nicely? What changes might need to be made to accommodate each culture?

If you're in need of assistance navigating upcoming mergers and acquisitions, please contact Kingsbridge Brokers today. We're happy to help you with this important business task.