Business mergers happen every single day. Most of us don’t even realize it until a merger involves two big companies. However, many small businesses find themselves merging with others often. If you’ve been given an offer or have gotten an offer accepted to merge with another company, here are some major steps you should take first before getting the merger underway.
Hash Out the Leadership Structure
One of the most confusing parts of mergers for employees is they don’t understand the new leadership structure. This is because many companies tend to overlook this aspect until after the merger. To ensure your company merger goes smoothly, it’s recommended that you hash out the leadership structure ahead of time.
Figure out how all departments are going to merge together and what executives are going to have specific authority over various areas. This will help greatly during the actual mergers as employees will know who to ask for answers to their questions.
Hire an Attorney
There are many lawyers out there and your company may already have one that you regularly consult with. However, when it comes to a merger, you should opt for hiring a specific type of lawyer. This is a merger and acquisition lawyer such as Carter West. These law firms are familiar with the merger structure and can ensure that all the specifics regarding your company’s legal rights and future interests are looked after. Your normal corporate lawyer will likely not have the in-depth knowledge or experience of dealing with a company merger.
Determine Brand and Company Image
Part of merging is developing the future of both companies into one. You need to sit down and determine what the future of the joint company looks like. You may decide to keep one of the firm’s names and operate under it. Or, you may choose to reopen the joint business under a new general name. You need to also consider items like your logos, company image, mission statements, culture, and so forth. You basically need to determine what the future of the company is going to look like once the merger is complete.
When your company is getting ready to undergo a merger, there are many things that you need to do. The above are three of the main things that you need first. Without these three vital components, no merger is going to be successful. Realize that the success of your future company highly depends on what you do now to prepare yourself for the joining of both companies.