There are many ways to grow your business. One is organically, simply by reaching more customers, selling more products, increasing your profits. Another is by acquiring other businesses. This second option can be incredibly impactful, but it’s seldom without its challenges. From integrating financial systems to synthesizing disparate cultures, corporate acquisition can be fraught.
That’s what makes it so important to have a sound corporate acquisition strategy in place—but what does such a strategy entail? Before you buy a business, reflect on these transition tips.
Communicate with Your New Employees
As you bring a big group of new employees into the fold, it will be vital to ensure open and honest communication. Consult with your state’s employment law, and brief your new employees on their legal rights. Also, be candid with them about the existing company culture, while letting them know that you welcome their feedback and want to help them acclimate as best as possible. The importance of communication cannot be overstated.
Emphasize Transparency and Honesty
The transition can be tough on everyone—so before you buy a business, make sure you talk to existing employees, as well. Find out what their concerns are, set the proper expectations, and help them to see that you’re not keeping anything from them.
Create a Positive Culture
Your corporate acquisition strategy shouldn’t just be about dollars and cents. It should also encompass intangible elements, including workplace culture. As you bring together two different teams, it’s essential to bridge the cultural gap and facilitate collaboration and productivity. Offer a clear, written value statement, and also be up front about your business goals and how each employee contributes to them.
Rethink Your Leadership Style
Simply put, the leadership style you used before may not work as well with a larger, integrated team. Be open to the idea that you may need to make some changes to how you communicate, motivate, and delegate. This is something you can discuss with any leaders or managers who come over from the acquired company.
Hold on to What Matters
As you integrate companies, it’s only natural that your own business will change. What we recommend is thinking carefully about the things that matter to you and the things you’re okay to abandon. Have a clear sense of those values that make your company unique and successful and be willing to hold on to those through a season of change.
Investigate the Target Company
Work with your corporate business lawyer to do some research and learn everything you can about the company you’re acquiring—not just its finances, but its team dynamics and its company culture. The more you know about the target company, the more seamless you can make the transition.
Plan, Plan, Plan
We can’t stress it enough. Think long and hard about how you will execute the transition—from logistical issues to more philosophical ones. Have a clear and detailed corporate acquisition strategy that you can fall back on even if the transition gets hairy. Talk to your corporate business lawyer about what this plan should entail.
Mathews & Peddibhotla Law Group has the expertise you need in corporate mergers and acquisitions, and we are ready to help guide you through the process. Reach out to our team to speak with a corporate business lawyer today!