Congratulations! Your merger is underway. Your hard work has nearly paid off! But you’re not quite done yet. That is—unless you want sh*t to hit the fan.
At Culture Works, we don’t want that—and neither should you. Did you know that more than half of mergers and acquisitions fail? And the reason behind it? The clashing between two separate company cultures: Culture shock.
If you’re looking to merge your company down the road, you need to consider your options to be one of the few successes. This includes, in many cases, deciding to hire a facilitator to help merge two cultures.
Here’s why.
In simple terms, a merger occurs when two entities come together to form one cooperative system.
(Fun fact: An acquisition is different! Acquisition means a single entity is absorbing another entirely. In a merger, both of the entities still exist in theory.)
You might be asking yourself, “How does this play out? What if the companies are really different?” The answer: it’s not always smooth sailing. But we can get close, with the help of a facilitator!
When you undergo a merger, chances are some interesting challenges lie ahead. Culture clash, directors losing their positions as a result of board restructuring, inadequate due diligence, we’ve seen it all.
Many entities undergoing mergers decide to hire a facilitator to help smooth out these challenges and to address them with grace.
Some processes that a facilitator might be responsible for include:
The transition period of your merger—and the way both parties conduct themselves during—sets the tone for the business thereafter. In other words, a facilitator establishes the line of communication that is foundational to the merger’s future success.
We would definitely consider giving great facilitators badges with “HR unicorn” written on them! And as if they don’t complete enough already, a facilitator must achieve all of these tasks while maintaining an objective, high-level view of the merger.
In addition, a facilitator might implement a post-merger structure or protocol. For example, a facilitator could structure post-merger employee engagement surveys and/or analyses.
These structures provide a lot of valuable information for company leadership. They give information about how things have changed due to the merger and how employees feel they have been positively or negatively impacted.
These post-merger structures can help leadership acknowledge areas of your company culture that may be suffering. Having this information—and knowing where you’re falling short—provides an opportunity for growth and improvement.
Day after day, companies come together to span new financial horizons. Mergers are expensive projects and ones that, unfortunately, don’t always hold promise—with less than a 30% success rate.
You might be asking yourself, “If the rate of success is so low, why do people continue to enter into mergers?” Because when you succeed, the reward is often worth it tenfold.
It’s a gamble that many are willing to take. But the risk doesn’t have to be so high.
Sometimes, you just can’t do it all. And that’s OK.
During a merger, it can be difficult to marry two separate company cultures. Looking from a birdseye perspective, picking and choosing the best aspects of both companies, is something that a facilitator can help with.
The cost of hiring a facilitator depends on the size and worth of the companies being merged. Although it might appear to be a big chunk of change to spend without knowing the final outcome, hiring a facilitator for your merger is well worth the cost if it means the difference between your company’s success or demise.
At Culture Works, we believe in the power of company culture, and we don’t want yours to suffer during your merger. Chat with us today about your potential merger and why you might hire a facilitator to help merge your two company cultures. Don’t underestimate the importance of your transition period. Please, don’t let sh*t hit the fan.