Tips to Succeed After a Merger or Acquisition

03 June, 2014

Due diligence has been completed, all of the documents have been signed and the money has been transferred, but the M&A process isn't over yet. Even after meeting all of these milestones, you will still face certain challenges as the company eases into new ownership. Anticipating and preparing for these issues in advance will help make this transition as painless as possible.

Preparing for Success

To understand the best way to prepare for the aftermath of a merger or acquisition, think about some of the companies that have done well after an M&A. What qualities do they share? In general, these companies have three things in common:

  • Strong leadership.
  • Clear, open communication.
  • Gradual changes made in the best interest of the company.

In many cases, organizations that are negotiating a merger or acquisition don't stop to think about what will happen after the deal is done, and those organizations that do anticipate problems often focus all of their attention only on legal and financial issues. However, you may face a variety of other challenges following a merger or acquisition, including the loss of key personnel, low morale and other employee-related issues.

Damage Control

The most effective strategy for dealing with these issues involves planning for them long before you even begin the due diligence process. For best results, anticipate any issues that could occur after the M&A is complete, and formulate a plan for resolving them and/or minimizing their negative effects.

For example, to make the merger/acquisition easier on the staff, maintain open communication with employees throughout the M&A process. Let employees know how the potential merger could affect them, and allow them to voice any concerns they may have about the process. Do your best to make sure that all employees feel comfortable asking questions and sharing their concerns. Respond to their feedback with compassion and understanding. Determine in advance who will take on which roles after the companies merge, and make employees aware of your plans.

A Smooth Transition with ShareVault

M&A deals enjoy greater success when the organization negotiating the deal gains a thorough understanding of the long-term impact the M&A will have on employees and stakeholders alike. In most cases, this understanding comes from effective due diligence. ShareVault simplifies the due diligence process by allowing organizations to share confidential corporate information with potential partners in a secure environment.

ShareVault has demonstrated that it is a leader in terms of its ease of use, speed, security and reliability. With ShareVault, you can maintain all of your corporate documents securely in a single cloud-based location while still retaining control over who can see, save and print each of the documents in your database. ShareVault also allows you to monitor all users' behavior so that you know who views each page, when it was viewed and how long it was open. What’s more, ShareVault even allows you to revoke access to documents even after they have been downloaded to an end user’s device or computer.

Long-range planning is essential for M&A success. ShareVault facilitates thorough, effective due diligence so that you can make the right decisions during every phase of the M&A process.