Integrating an acquisition into your business
So you've done your research, found a business you want to
acquire and the process of acquiring it is underway. But is your
company prepared for an acquisition? Setting clear aims and goals
about the acquisition process is vital, as is communicating the
plan to all interested parties. Retaining staff and handling that
aspect of the acquisition is perhaps the most important aspect and
the most challenging. With change comes uncertainty, perhaps fears
about job losses or relocations. All the issues need to be handled
openly.
- Areas to consider
- Eliminate duplicated assets
- Corporate culture
- The Office
Areas to consider
If you are a business planning to embark on a number of
acquisitions, it's important to keep an eye on the impact the new
business/es have on your company's brand. Is it still clear what
the business does and is? Are current clients and/or customers
being kept abreast of the changes and will the acquisitions impact
on those relationships? For all these matters, having the right
people in charge is important. The trick is to integrate the right
people from the acquired business into your own management
structure. It could be an opportunity to move people around the
organisation.
- Make sure you keep anyone affected by the development up to
speed
- Consider using it as a time to move people around
departments
Eliminate duplicated assets
An acquisition is a great opportunity to improve your firm's
economies of scale. Whether that's in terms of office buildings and
computer hardware or getting better deals from suppliers.
- Consider using just one office
- Do an audit of all equipment to ensure you're not over or under
equipped
Corporate culture
Putting together two corporate cultures may be the biggest
challenge in any integration. Every organisation will have its own
distinct culture, in terms of work ethic, the way people are
managed and the type of hierarchy in place. Acquiring a business
will have a big impact on employees and all their fears and needs
must be considered and handled. That doesn't only mean the people
on the shop floor. Often the senior figures will also have issues
and diplomacy in the name of the game.
- Keep current staff informed and up to date
- Make yourself available to hear staff grievances
The office
Though more a merger than an acquisition, the Ricky Gervais
comedy sitcom The Office portrays a classic example of two cultures
colliding when two branches of the same company were merged into
one location. The "Swindon Lot" were well managed, well motivated,
bright and hard working, whereas the Slough office, managed by the
Gervais character David Brent was a shambles, all inappropriate and
schoolboy humour. If you haven't seen it, rent or buy it. It's a
lesson in what not to do. And it's funny.
- Learn from other mistakes
- When bringing two offices together ensure everyone gets to know
each other