If you’re preparing to tackle a merger and acquisition (M&A) transaction, then you already know that the process is not for the faint of heart. A successful M&A has many moving parts, each demanding an equal share of your attention and time. From the basics of communication, to dealing with the critical legal and financial aspects, there are always a lot of balls being juggled in the air.
A merger and acquisition is a time of flux, uncertainty, and opportunity for everyone involved. There are critical points throughout the process that will determine the eventual success of the transaction. Knowing how to navigate these points and move everyone smoothly from point A to point B is a critical component of a successful venture.
You’ve probably noticed there are organizations out there who handle this process with ease. What are their secrets and how can you employ them in your own organization? Here are four strategies for a successful merger & acquisition.
It almost seems too simple to warrant talking about, but establishing your goals in the earliest stages of an M&A provides a blueprint for the process. What are the real reasons that the M&A is taking place and what are the overall goals upon completion? Are you looking to completely reinvent the organization? Supercharge your market share? Pave the way for breaking into a new market segment? Establish and communicate these goals as early as possible.
Perspective is everything. Too often, those involved in an M&A get stuck in the past and fail to see that an entirely new organization is being born right in front of them. Mergers & acquisitions deserve to be handled with the same thoughtful care that is given to a new startup. Approach the M&A with a fresh perspective and open mind.
Be Smart About Integration
An integration plan is a must, but it needs to be effectively structured. The most effective integration plan looks at each and every operational facet of each of the businesses involved and builds a strategy for measuring success at key points along the way. What will each operational facet look like two weeks into the M&A? What about two months?
Additionally, it’s important to streamline leadership in integration plans. Ownership should be assigned for each key organizational function, but that ownership should fall on the hands at the highest possible tier of the ladder. Each person in charge needs to be someone who has the authority to make knowledgeable and swift moves in response to challenges. This is especially important for a small business M&A where roles and responsibilities tend to run together.
Communication Is King
Not a single step of an M&A should take place without an effective communication strategy. This all starts with bringing in stakeholders and having highly communicative meetings on the whats and whys of the merger, and how each of them will be individually impacted by the process.
Make regular communication, in every imaginable form a key priority in your M&A. Also, don’t underestimate the importance of the feedback you receive in response to these communications. When you listen, you’ll discover that team member feedback offers incredible insights.
Don’t Forget That an M&A Advisory Firm Is a Key Partner
At Steiner Business Solutions, we offer merger and acquisition services out of our Wilmington, NC and Richmond, VA offices. We’re the partners who can guide and advise you through every step for a more successful, fluid M&A transaction. Contact our advisors at Steiner Business Solutions if you’re considering a merger and acquisition now, or in the near future.