Mergers and acquisitions can be a fantastic way for two organizations to blend and become stronger on the other side. It can be a great vehicle for your Middle Market firm to get access to processes, products, staffing, and innovations. But, blending two companies together isn’t always seamless or easy. Your leadership and management teams will need to put in considerable work to help ease the transition. So, you need to know how to effectively blend cultures and people after a Middle Market M and A.
Before, During & After Your Middle Market M&A Event
Throughout the entire M&A phase – from initial thought through discovery and all the way to completion, be observant of how the two organizations run. You will likely find some similar or parallel structures and processes within your Middle Market organization and the other company. And, you’ll also see some distinctly different ones. Take note of these areas and immediately start thinking about what the best solution will be. Waiting until after the final pieces are in place will be disastrous.
Consider appointing a joint team filled with key members from both organizations. Then, task them with working through cultural differences effectively and efficiently. The team should be able to adapt as you move through the merger process.
Be Flexible And Adaptable For A More Success Middle Market M&A
As with anything, your best-laid plans will likely need to shift and adapt throughout a merger or acquisition. Instead of designing a rigid set of plans, consider creating a flexible skeleton. Start with plenty of ideas and plans but be able to shift when needed. And, be prepared to refine frequently as more information becomes available.
This also goes for blending your cultures and staff into one homogenous Middle Market team. Even if you feel your organization has better ideas or structure, investigating possible adaptations will engender a lot more support from the staff of both organizations.
Meld Your Cultures As Much As Possible, As Early As You Can For Middle Market Wins
No matter which side of the M&A your Middle Market organization sits on, you have two groups of employees with human feelings and emotions. They will be nervous, understandably, so the faster you can work on integrating your cultures, the better. Make sure both groups know how valuable they are to the future success of your new organization. Don’t show favoritism to either organization. Also, try to figure out what parts of each will best suit the company as you move forward. If you can help employees see the great benefits of cherry-picking the best from both organizations, you’ll likely get better engagement.
Have both sets of employees meet and connect as often as possible. Facilitate learning experiences for both groups and make sure employees have a say in some of the processes you will be integrating. Sometimes it is better to design an entirely new culture that takes the best from both organizations and also helps shore up weaknesses. You’ll help prevent anyone from feeling like an outsider if they can see you are designing a whole new company rather than mashing one into another.
M&A events can be a phenomenal boon to your Middle Market organization but require finesse to blend two companies, teams and cultures together.
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