What Business Leaders Need To Know Before Agreeing To a Merger (Or An Acquisition)

Mergers and acquisitions are part of the reality of business.  These events are both common and complex, and require a huge amount of preparation for smooth transitions.  However, there are some factors involved in mergers and acquisitions that cannot be controlled.  Be that as it may, these still have to be foreseen, taken into account, and carefully scrutinized.

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Take for instance the impact the merger or acquisition will have on the companies involved.  While seeing the future is impossible, there are certain aspects that can be predicted via research and due diligence, such as the financial strain for the first few quarters, and the potential reaction of the market to the merger.

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Other factors such as merging the company cultures and operational methods need extensive planning and consideration.  Companies are made of people – failure to properly address and plan for the people side of the transaction can lead to disastrous results.

There is no doubt that research, due diligence and planning can set and temper the expectations of company stakeholders. The ideal scenario is that after the transaction closes, and after the companies have stabilized post-merger, there is a synergistic affect and the sum of both companies far exceeds the individual companies as well as the effort put into the merger itself.

As the COO and General Counsel for O’Shaughnessy Holding Company, David Baer has all the passion and expertise for both business and law. Check out this page for more about him and his insights.