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3 things to look at if considering a merger

If you believe merging with another company is the path to success, it is crucial to be aware of the downsides and complications that mergers can bring.

It is far easier to avoid the potential pitfalls and continue alone than undo things after you merged and they occurred. Here are some things to think about:

Some staff members might not like it

Maybe your maverick marketing guru has been crucial to your current success. Are you expecting them to work in harmony with the other companies marketing team?

Merging two teams of staff can lead to personality conflicts causing key people to walk. It might also require you, as owners of the two original companies, to make tough decisions about who you let go, as joining forces may not create enough work for all current staff.

Some customers might not like it

Maybe you see merging as an opportunity to secure that valuable client you always wanted but could never poach from the company you intend to merge with. What if the reason they were never tempted was that they have a personal bug with you. What if they take their business elsewhere when they hear you are merging?

The other company’s problems could become your problems

The company you intend to merge with likely has many positive qualities to tempt you to join them. Yet you also need to look for skeletons in the closet, such as problematic staff, unpaid tax bills or pending lawsuits. Being upfront with each other is crucial, so you understand what you are getting into.

Getting legal help to conduct due diligence and draw up paperwork increases the chance your merger succeeds.