Identifying potential merger risks [Video]
There are always potential risks to impede the seamless integration of a merger, especially for high-profile or substantial deals. To identify and address these risks before they derail a successful merger, here are two helpful pieces of advice.
Most associate mergers with layoffs or downsizing. Many high-level employees may realize this and seek other job opportunities before the merger even occurs. This is detrimental because all of the most talented employees may leave before even knowing if they’ll be kept on or not. Creating a talent retention plan helps minimize this problem.
Next, the IT systems between the two companies may not be compatible. This is why it’s important to begin planning for a major IT overhaul or developing a new strategic plan before the merger begins, not during the process.
With the help of an experienced M&A advisor, you can avoid these potential risks to your M&A process.