If you’re expanding your business – or you are in a position to do so – well done. This is an insatiable and uncertain marketplace, and you have to be experiencing a certain level of success if this is even an option for you. You’re doing something right, and you should be proud of yourself.
We use the term merger and acquisition as an umbrella term to describe the consolidation of companies and assets through a financial transaction.
These terms are often used interchangeably, but they do have completely different meanings.
In an acquisition, one company purchases the other outright. In this instance, one company effectively absorbs another, and they usually both become the same company, but under the name of one existing company. Or, perhaps they continue to function separately, but one company is owned by the other.
By contrast, a merger is the combination of two firms, which then forms a new legal entity under the banner of one corporate name.
Whatever you choose to do, mergers and acquisitions can be highly complicated. You’re merging assets and staff, operations and revenue. If you’re not careful, this can leave your company extremely vulnerable. This is a delicate and precise process, and you need to be very careful.
Yorkshire Change can help. We’re extremely experienced in helping companies to complete successful mergers and acquisitions. We can make this process smooth and trouble free. If you would like more information – or to speak to one of our experts – fill in the contact form at the bottom of our homepage.
The steps to successful mergers and acquisitions
We can help you with a variety of aspects of mergers and acquisitions, whether you’ve already begun the process or you are looking for a company to potentially absorb. In this instance, we can help you choose the best organisation, approach the right person, negotiate the deal, complete it, and then merge your company with theirs in the best way, all the while limiting the impact this will have on your employees and your revenue streams.
Yorkshire change can take a lot of pressure off your company directors and staff, because we’ve done this many times before. We know what the potential issues could be and how to avoid them. Hiring us will make the whole process a lot easier and potentially quicker.
We know that your business needs your constant attention, so perhaps you are putting off growing your business through a merger or acquisition because you can’t take your eye off the day-to-day running of your business. That’s where we can help.
Our team of consultants have been involved in a number of acquisitions, both personally through our own businesses and on behalf of Yorkshire Change clients, and can guide you through the entire process.
Top tips for successful mergers and acquisitions
- View this entire thing as the formation of a new company
Whether you like it or not, things are going to change. You can’t just carry on as normal and it would be foolish to think you can. So buckle up and prepare yourself for a big change.
- Communicate your intentions and aims to stakeholders and staff
It is likely you’ll be met with resistance from somewhere. That person who just came to mind? That’s the person who is going to cause an issue. It is really important you tackle these issues head on and from the beginning.
You should be meeting regularly to discuss plans and how your project is progressing. Keep a close eye on team morale.
Mergers and acquisitions are stressful. Communication with all involved should occur at least once a month.
- Own this from the highest level
The CEO or director should be driving this project, even though full team support is necessary and needed.
- Collect and use employee feedback
Your employees are as close to the work as anyone else can be. They will give you valuable information about how the merger is going and how they think it should progress.
If you’re in a position to do it, we recommend you go for it. Mergers are an amazing way to grow your business and increase your revenue stream. The process doesn’t have to be a logistical nightmare, so long as you do it in the right way.