Mergers & Acquisitions: Managing Culture & Change
posted 25th May 2022
Going through a merger or acquisition can be a difficult and complicated time for a business. There is so much a business owner needs to think about, from the legal considerations to financing and tax. However, another important aspect should not be overlooked; people.
When a business is transitioning through a corporate transaction such as a merger or acquisition, there are two important aspects from a people perspective: company culture and how employees are impacted by change.
Change management is a planned and structured approach to managing and implementing transformation within an organisation. There are four key factors involved in an effective change process:
- Planning - Identifying what those changes are and have a clear plan in place on how the change will be rolled out. Ensuring a clear and realistic plan is in place is key to success.
- Communication - All staff and stakeholders should be communicated with; consulting with all those affected by the change.
- Leading - Preparing the management team is also key. Managers who positively lead change, influence others.
- Implementing and Measuring - Businesses should continuously monitor progress to ensure planned objectives are met. Feedback should be sought from stakeholders and employees to keep the momentum going.
With regard to company culture, it is important for the business to identify what its goal, mission and values are, and what they will be once the change has occurred; will it remain as it is or will the business need to align the culture of two businesses?
An example of different cultures could be staff are expected to work from the office at all times in one company and the other company works from home; the proposal could be merging these two and creating a hybrid working policy.
Businesses that have an open, transparent and honest relationship with their staff during a change process will benefit in all aspects of a merger or acquisition.
Need advice?
As M&A experts, GS Verde support businesses through the acquisition process offering end-to-end transaction support as well as assistance in respect of managing the change process.
If you have any queries about this or would like to assistance with any of the information set out above, please contact our Employment and HR Team. For a no-obligation quote, use our online 'Get a Quote' service
If you are considering a merger or acquisition for your business, visit www.gsverde.group to find out more about end-to-end support.
