6 Essential Components of a Strong Merger & Acquisition
When you consider engaging in a merger or acquisition with another company, you may have plenty of motivations. It could be a financial leg-up or a key step in assuring your company’s prosperity. If you don’t plan your M&A with care, however, you risk throwing away the advantages you hoped to gain. The following 6 elements are vital to ensuring a successful merger or acquisition.
#1 – A win-win situation.
If your merger or acquisition is skewed in one company’s favor, you may face problems down the line. As with any relationship, there needs to be some give-and-take. Ultimately the M&A should benefit you both in some way. A strong M&A involves a great deal of forethought from both companies, as well as a positive outlook for the future
#2 – A clear vision.
What do you envision for your company’s future? A clear set of goals and objectives will keep you focused throughout every decision in the M&A process. Your vision, of course, should incorporate the new identity you’ll take on with the merger or acquisition. After all, a shared vision is just as important as a clearly-defined one, ensuring your companies will mesh perfectly after the M&A.
#3 – A contingency plan.
Your vision isn’t complete without a comprehensive backup plan. It’s easy enough for things to go wrong when one business is involved; with two in the mix, the potential for mistakes essentially doubles. You can’t predict everything, but make sure you have a solid contingency plan to help you respond quickly and effectively when things get messy.
#4 – A transition team.
Never skimp on the time and effort involved in creating a strong transition team. Your merger or acquisition needs the right combination of people, with the right skill sets and knowledge, to be available at the right time. Because your success is intertwined with that of another company, you need the right approach to teamwork for the best chance at long-term success.
#5 – A well-timed plan.
The very best action plans involve meticulous timing and coordination. Create a straightforward timeline for your merger or acquisition, setting milestone dates to keep your teams on track. Make sure key people have their responsibilities assigned to the timeline, coordinate with the other company, and don’t forget any deadlines you may have promised to your stakeholders.
#6 – A commitment to communication.
If you’re keeping people in the dark, your merger or acquisition may not go as smoothly as planned. Make sure you communicate effectively with your employees, stakeholders, and key players from the other company. You may also want to create a master Q&A document to stay consistent when answering questions from partners, customers, and the media.
Another crucial component of a merger or acquisition—or any important business decision, for that matter—is dependable legal counsel. Get in touch with the professional attorneys at Campbell Law Group to ensure your bases are covered before the M&A begins. We are confident that your business will benefit from our partnership.