4 Common Issues That Could Arise After a Merger & Acquisition Is Complete (And What to Do About Them)
Mergers and acquisitions can be complicated in ways that you may not realize when you begin the process. It is only after the transition is complete that you may notice small problems that may make a big difference. Some of the most common issues that companies face after a merger or acquisition are outlined below.
- Different regulatory environments.
Businesses go through many changes in a merger or acquisition. Learning how the other company operates is one of the most challenging aspects of this shift. One of those items is dealing with regulations after the transition is complete.
For example, companies that expand into different fields may not realize there are extra licensing or permit requirements. Expanding into another state (or country) may also significantly affect how the company does business. A skilled business attorney can help you get a jump on these items before the merger or acquisition takes place so the process can run much more smoothly.
- Employee changes.
Transitions involving employees can be extremely difficult. They may lead to mass layoffs, significant transitions, relocation, and other huge changes. Individual employees may struggle in this type of environment, and management may question their role in the company while you reorganize.
To combat these problems, it is important for upper management to understand what is happening in the business. That way, they are not only secure in their own jobs, but they can provide information to those they supervise as well. Communication is essential.
- Meeting customer needs.
During the merger or acquisition process, client needs sometimes suffer because of the quick changes. It is important to ensure clients that they are a priority, and they will continue to have top-notch service even after the merger. Speaking to customers to ensure that their needs are being met after the transition is important as well; ask how you can serve them better with the additional resources you have after the transitionary period.
- Training based on new resources and other changes.
Your company will change dramatically in many situations after a merger or acquisition. Just because you know what is going on does not necessarily mean that your employees will understand everything. Ensure that employees are trained on all of the additional resources that the change will bring and explain how they can use this information to make their jobs easier or better serve your customers. Creating an established plan for training and transition will make this process much easier on you and your employees.
An experienced business attorney should be a part of this development. At Maxwell Dunn, we can help you create plans and timelines. We ask the hard questions before the shift so the aftermath can be productive and as stable as possible.