Change is scary. When you merge with another company, your employees can find it difficult to assimilate in a new culture. Bringing two small businesses together is almost like a marriage, complete with stepchildren and in-laws. Business mergers can be beneficial for both companies, but you do need to reassure employees that they still have a role in the new company. Here are four key things that you can do to smooth the transition:
• Explain your motives. Tell your employees why you are merging and what you’re hoping the end result of the merger will be. Hear people out when they voice concerns. You may have to dig deep to really understand the apprehensions.
• Set common goals. In business mergers, it’s important to keep everyone on the same page, working toward the common good. Even departments that are seemingly far apart can collaborate to share goals and ideas.
• Prepare your staff for change. Even though both businesses may have similar cultures, the differences will be highlighted as you come together. When pushback happens during the process, take concerns seriously. Discuss the issues and find common ground.
• Define new roles and delineate responsibilities. Successful business mergers include outlining new roles in the company and allowing people time to settle in to their new position. Let the right people handle their job without trying to take over.
It’s estimated that almost three-quarters of business mergers fail. One key reason was because of cultural differences between the companies that were never resolved during the integration process. If you have time to allow your teams to work together before the merger, that can really help you gauge the other team and see the strengths and weaknesses of both companies.
Find lending options at Vankeith Commercial Capital that offer opportunities to grow your business, whether you’re considering a business merger or not.