As the new year quickly approaches, it can be an excellent time for new beginnings for your business. When the plans to merge your business arise, we want you to be prepared for this new venture and ensure its success. Hoegen & Associates is here to advise you on making your merger business successful this upcoming year.
If you’re looking to buy a company or expand your current company, there are several things you should know to ensure it is a beneficial decision. Every year, thousands of mergers and acquisitions happen, and employees and stakeholders may be left unaware or confused about what this means. Keep your business running smoothly through this time with the following tips.
For any questions, please don’t hesitate to contact our team at Hoegen & Associates.
Have a Solid Transition Team
To ensure a smooth transition, you need experts from both companies to come together and share their expertise and agree on a strategy for change. This team must be composed of members who are known to execute strategy smoothly and have the communication skills to work with others. Ensuring everyone is on board with this transition is vital to the process. Learn more about business organization here.
This team would be responsible for communicating the goals and objectives for the merger. The merger should bridge the gap between your company’s present state and the future state you wish to achieve. Individuals on the team should take time to show that they value their team by keeping everyone updated on the changes happening, new strategies, new groups, and new opportunities.
Know Your Potential Partners
When acquiring another company as a part of your own, you want to feel comfortable and confident in the merger. You must know your potential partners and their company from the inside out. The first step you can take to fully know your potential partners is to have background checks done and ask for references. Be sure to talk to all references and ask the right questions to understand their perspective.
Understanding your partner’s employees and hearing what they have to say can be beneficial in genuinely knowing your potential partner. The attitude of the employees will provide a much clearer picture of the company and individual as a leader. Talking to the employees can also help you understand the company’s operations, how well they know procedures, and if they follow them.
Understand Your Partner’s Financials
Often, a merger or acquisition seems like a great financial opportunity to save money, expand into new markets, and lower the cost of capital. For the merger to be financially successful, it is essential to investigate your prospective partner’s finances. Work with a trusted financial expert to help you go through their books within the last five or seven years to find any abnormalities.
By understanding your potential partner’s financial situation, you can ensure the merger is the right and most beneficial decision. You will uncover any problems in keeping the books straight and address inconsistencies. Figure out any current state or federal tax issues and investigate all documents relating to past tax issues to ensure that they are fully resolved.
Get To Know Their Clientele
One of the greatest methods to firm your merger decision is understanding your prospective partners’ customers or current and past clients. By talking with the clientele, and even those who have left, you can better understand the company’s strengths and weaknesses. You will find out why some clients have left and what makes some clients stay.
Even simply reading customer reviews online and learning as much as you can about the company’s future viability based on what people say will give you a tremendous amount of insight. You can learn a lot about a company from what their clients say about them. Whether customers are happy, unsatisfied, or upset with products and services, it all says something about the leadership.
Merge Your Employees
Most people can get uncomfortable when it comes to change, making transitioning a challenging process. Checking in with your employees throughout this transition will not only show that you care and value them but also allow the process to run more smoothly. The most successful mergers or acquisitions stem from the entire company being on board with the change.
All parties, even shareholders and owners, need to understand the vision of the merged companies and see the upside. When the employee cultures are combined, the vision for the merger can develop more efficiently and securely. The satisfaction of your employees is essential to creating a successful path for operations and company culture.
Blending the company cultures is a key component of a successful merger.
Be Confident in Your Merger
Take these necessary steps to ensure your merger is successful and the best decision for your company and employees. Partaking in a merger or acquisition can be a huge step financially for your company, and you want to ensure it is the right choice. Hoegen & Associates is here to help you with every aspect of the process.
If you have any questions about merging your company, please contact us today at 570-820-3332.