Do you want to increase the value of your company? Who wouldn’t! When you hear the word “value,” however, what do you think of? In many cases, dollar signs flash in front of people’s eyes. And for those undergoing a merger, adding monetary value to one’s company would likely pass without complaints.
There are, however, other ways to increase the value of your company during your merger. Value is not always so black and white. In many cases, the value growth of a company is a slow process—taking as long as two to three years to make full returns after the merge is complete.
But, you can bolster your company’s value in other ways. The real value, after all, comes from fostering real conversations to learn from one another. There are many steps you can take to increase your company’s value during your merger.
Here are our best practices.
Great! You’re undergoing a merger—but why? The secret to boosting the value of your company is to craft the perfect story. The story you craft should feature an account of not only where the two merging companies have been but also where they are heading in the future.
The vision for your merger should be very clearly communicated in your story, showcasing the strengths of both companies involved.
In your story, discuss both the short-term benefits and long-term value that will be created through your merger. Your story should be ambitious yet reasonable. Include your goals for the merger and your strategic plan on how you intend to get there.
Craft your story, then sing it from the rooftops!
Congratulations, you’re taking a serious step to growing your business! Although initially overwhelming, this is the best time to perfect your culture.
Define your new culture from the big to the small details. What bits and pieces of each company will you take to strengthen your business model? What practices or behaviors will you leave behind?
Identify room for increased profitability and growth in your new combined company. What standalone improvements might you make? Here, you get to pick out all the elements that will make your company stronger.
Bonus tip: Creating an efficient organizational structure and rationale behind each choice will help streamline the integration process down the road.
Overlooking the meshing of two separate company cultures is arguably the biggest mistake you can make while undergoing a merger. You might think that since you have similar management practices, or wear similar attire, that it’ll all pan out fine. But oftentimes, it’s not so simple.
Culture goes beyond the surface. Culture is more than your mission statement. Just because you hold a similar value or practice as another company does not mean you’re a match made in heaven.
Companies merge to increase their competitive edge: to become better than they were on their own. But research shows that less than 30% of mergers are successful, and unfortunately, much of these failures are due to a disregard of clashing company cultures.
If you’re in the midst of a merger and have been tiptoeing around culture up until this point, now’s the time to address it. Facing culture discrepancies head-on increases your chances of success greatly.
And, of course, don’t be afraid to make it fun! Arranging an assortment of events, workshops, and activities will encourage employees to explore one another and their companies in a fun, productive way!
Now it’s time for action. How will you implement this new culture into the workplace? It needs to become the new normal, and quickly.
After the deal is signed, get to work on a comprehensive plan that maps out your integration processes. Pinpoint daily practices that employees can take on to support your new operating model.
And remember, you can’t just talk the talk. You need to walk the walk. In other words, go beyond telling your employees about the changes being made. They need to understand the rationale behind each change being made and why it’s beneficial not only themselves but also the company at large.
Your new company culture should be crystal clear. Without a set integration plan, your prior work will be for nothing and your new culture will fail to stick. So, do not skip over this step!
We know you’ve got a lot on your plate. But sometimes, leadership can overlook a crucial step during a merger: continuing to run your existing company at a top-notch level!
We know, it’s exciting when a merger comes down the pike, but that doesn’t mean you can push the individual company to the side for the time being.
Here are some tips to ensure you continue to provide top of the line service and expertise:
Mergers can be filled with a lot of uncertainty and moving parts. Increasing value to your company during a merger can feel like another thing just shoved onto your plate—but we’ve made it easy with these best practices.
We all crave success. So, use this shared goal to bring your two companies together for a successful merger. At Culture Works, we specialize in connection and are here to offer our HR expertise, so that transitions like this run with ease. Connect with us today to see how we can help!