I am on both sides of an acquisition during the period of my career. Since there is often a large amount of discussion on the logistics of the transaction, such as for example choosing the best acquirer, negotiation tactics, whether to accomplish a stock vs. asset sale structure, a significant topic is all too often ignored: post-acquisition integration.
While it is important to get yourself a great price and minimize tax implications, most sellers continue to work for the buyers following the transaction is complete. Even if indeed they don’t, many of their workers make that transition. Shouldn’t you give consideration to how this may work?
I want to provide some reassurance. If you are considering this topic, you’re in the minority. My experience is that hardly any people do. There are so many details to take into account during an acquisition that short amount of time is spent on exactly what will happen following the deal is performed.
How exactly to Keep Company Culture Alive After an Acquisition
But unless you consider these issues, you already are behind. Your staff will expect you to really have the answers at the ready. Saying, "We haven’t figured that out yet" will be met with stares that say, "What were you guys discussing all that point then?"
Who’s going to are accountable to whom? What jobs will be eliminated? Where will my office be? They are all important questions for your staff. You ought to be prepared with as much answers as possible.
The most important things to take into account is your role in the brand new organization since it will set the tone for everybody else. Are you considering an unbiased entity reporting to the CEO or work under somebody else’s management? This really matters to everyone.
Even if your brand-new boss says that you’ll remain independent, your staff psychologically should in the event that you somehow remain portion of the new organization. But hanging to all of your old cultural traits and identity will probably lead to crisis later on.
The Need for New Blood to a Startup
It’s OK that you can act naturally but embrace the brand new organization, too. I would suggest your doing a little more than you’re initially more comfortable with in this regard, even if this means losing authority over your old team or losing a few of your old benefits and traditions.
Have a conversation relating to this together with your new boss prior to the deal is performed. Get their thoughts about how exactly you’ll interact and allow person know how you intend to go over the new scenario together with your team.
In the event that you intend to remain independent, ask to find out beforehand if this changes. If you’re likely to have a fresh role at the brand new company, ask whether it’s OK to speak to the brand new CEO if something isn’t working. Establishing an open relationship in early stages will make a difference later.
This is also true if the transaction involves an earnout (money to be paid for you later upon the business’s reaching certain milestones).
You might want a high degree of integration within the brand new company to benefit from a few of the resources the customer will provide. If the new management makes decisions that block the way of your earnout, you will want in order to visit the chief to go over things.
Finally, worry a whole lot about the business’s culture before agreeing to the transaction. When two organizations have become different, integration is quite difficult. If this appears to be the case, consider whether this the proper deal for you personally and you skill to alleviate the issues.
Most importantly, think through the problems and become open and honest with yourself, your brand-new boss as well as your employees. There are emotional issues linked with selling your business. (It’s your child, in the end.) And really understanding what’s best for all parties is harder than you may initially think.