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If a business wants to grow and get ahead of their competition, they may want to consider mergers and acquisitions (M&As). Doing this means that the business can grow and that they will have a wider reach for their products and services. M&As happen everywhere, from manufacturing to financial institutions, and they have the potential to be very successful.

The Impact of M&As

Usually, companies look for merger and acquisition services because it makes excellent business sense. They tell their employees that there will be very few changes, and that customers have nothing to worry about. In fact, they paint a rosy picture in which everything will be bigger and better.

A few months down the line, however, things start to go wrong. The company that did the merging or acquiring starts to become more forceful, meaning that the acquired company suddenly has to change. This changes the relationship and this creates bad blood among employees and customers alike. And at this point, things start to go wrong.

The acquiring company, which looked so strong, suddenly starts to fail and they often don’t understand why. In reality, it is because they didn’t stick to their word. The company culture is not unified, with two camps existing and fighting each other instead of working together. At this point, profits start to decline, and the M&A becomes another statistic of a business move gone wrong.

Avoiding the Problems

The problem is that there are differences of culture. Culture is how people are treated and how business is done. When there are inconsistencies in this, profits inevitably start to drain. If anything is to be rescued at that point, management has to start stepping in. They should start by once again creating a values statement that is applicable to the company as a whole, changing it from two unities to a single union. The Values Statement should be written down and made official, and it should include core values that are positive and that everybody lives by.

Next, both units should be analyzed from an organizational perspective. Do not confuse this with financial analysis, however. Rather, it is about taking an objective look and determining what does and does not work in both units. This helps to identify and quantify the strengths and weaknesses of both. As such, they can then address the weaknesses and highlight the strengths, valuing each unit for what it brought to the mix, and turning it into one.

Last but not least, a clear and actionable strategic plan should be created. For the foreseeable future, this should be monitored every week. Performance indicators should be set as well and changes have to be made if objectives are not met. You are going through change anyway, so you cannot then suddenly become rigid with your actions.

Last but not least, make sure everybody is able to have a voice and that they are able to not just address their concerns, but also put forward ideas for improvement.

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