Companies in California and throughout the country may tout their culture as one of their strengths. Corporate executives and others may also point to a company’s culture as a reason for why it hasn’t performed well. Even if an organization has a strong set of core values, those values could be tested during a merger or acquisition. Ideally, the CEO will step up and establish what he or she wants the business to be known for.
Generally speaking, it is easier for a message to resonate when it comes from a leader as opposed to someone in HR. As the business grows, the CEO will need to find and develop a leadership team that can help to spread that message throughout the company. That team should spend time talking to employees about those values and showing examples of those values in how the business operates each day.
Taking such a step can be especially important when acquiring an existing organization. It can help create a new mindset for those who are being absorbed into a new company and are trying to figure out what the new entity is all about. Leaders within an organization should take time to listen to their people and understand what their needs are. This can help to create a sense of community among everyone who works for a business.
While buying a company may help a business accomplish strategic goals, it could also trigger legal issues as well. For instance, it may be necessary to get regulatory approval before the transaction is allowed to close. Furthermore, the acquiring company may become liable for any debts or other problems that an acquisition target is currently facing. An attorney may be able to help analyze a deal to determine if it’s worth pursuing.