Whether it’s more of a mutual merger of corporations or more of an acquisition, in either case it’s two companies combining their employees and resources. As many San Diego business leaders already know, these kind of mergers can get rocky at times, especially in the early days. There are some serious challenges to face and considerations to be made, such as how to cut costs while also conserving the essentials of what made the two companies great. That said, there is some practical advice available for how to make the transition more seamless and less painful.
Here are some professional tips for how to make a merger go more smoothly:
- Get to know the individual employees and how they can fit into the new picture. In turn, they will likely feel more invested in a career in the new company.
- Have employees from both sides of the merger get to know each other too. This will help your corporate cultures to come into alignment and to mitigate feelings of “us versus them.”
- Eliminate overlapping roles, but remember that employees are the heart of any business. Downsizing too much will cause your remaining workers to feel shaken and overwhelmed, especially if they have to take on new responsibilities.
- Be transparent with the workers. If you’re going to downsize their positions, tell them soon, so they can plan accordingly. Don’t just surprise them without warning that they’re fired.
- Go easy on the employees’ workloads and expect their productivity to be down until they can fully adjust to the new status quo.
- Don’t rush. A healthy transition takes a lot of planning, careful execution and a year or two of patience.
- Always remember that due diligence is a must at every step of the process.
Combining companies is never easy. In fact, it can be stressful for everyone involved from the big bosses down to employees. But things don’t have to be as anxiety-inducing as sometimes they are.
If your company is contemplating or dealing with any of the issues involved in a merger or acquisition, it’s important you understand your legal responsibilities and find solutions to problems. Talk to an experienced San Diego attorney who can handle all these complex aspects of business operation in California.