Mergers and acquisitions are, on paper, one of the quickest ways to build growth and success. In theory, merging with another company means you can leverage their audience group and expertise to grow the business and its revenues. However, asking two companies to integrate together and follow one single mission is a challenging request.
If you are aiming for quick and easy success, you need to reconsider your merger strategy. According to a recent Harvard Business Review report, mergers and acquisitions have a high failure rate, between 70% and 90%. Merging is not a decision to take lightly. You have to dedicate resources to understand each company’s market value and ensure your merger is back with the necessary data and funds. A perfect data marriage on paper can still fail in real life if you fail to involve your merged teams.
Ask for feedback before making decisions
The first and most significant challenge of a merger is bringing both teams together. In practice, what this means is looking for premises that can welcome all employees. However, if you’re going to create an attractive office environment that inspires productivity for teams who don’t know each other, you need to consider their needs and preferences. Indeed, knowing what employees like about their current work environment can provide cues about the future layout and its functions. Did teams enjoy break rooms? Had one office an in-house gym studio? Gather information about what they want to keep in the merger.
Start from scratch
In a merger, there may be a variety of options to bring teams physically together. Mergers with remote businesses enable each group to carry on using their usual office. Others may require one side to move into the premise of the other. But, ideally, you want to start with new premises and move both teams together. For companies, it’s the opportunity to upgrade most of the furniture and interior decor. However, you need to secure unique and essential items that don’t need replacing. Ergonomic chairs and desks and break room entertainment furniture, for instance, can be gathered and sent to the new address, using expert freight shipping services such as Shiply. Think of it as a way of making a new place feel homely.
Invest in team building events
It takes time for a new member of the team to integrate into the business. When you bring two teams together, it becomes essential to invest in team building solutions. You need to break down pre-existing groups to encourage people to meet and mix. Rather than dealing with two individual teams, team building events can help create a common ground for a business merger culture. Events are helpful at the beginning of a merger. But they remain essential in a variety of forms during the first months and years. Establishing social events, such as a monthly quiz night, for instance, can encourage individuals to get to know each other outside of the working hours. Failure to help teams to bond can slow down the merger success and lead to resignations and dissatisfaction.
In conclusion, a successful merger depends on a variety of factors. Data and financial analysis will play a significant role in making the right decision. Forecasting market trends and using the merger to address emerging needs before competitors remain essential to growth. However, your merger office model establishes a solid foundation to build on.