4 Ways To Make A Company Acquisition Go Smoothly

When you are in the process of acquiring another company, it is desirable to absorb the other company as seamlessly as possible. Here are some tips to ensure that your acquisition goes smoothly.

Keep Previous Owner as a Consultant

Even though you have taken over the company, you might not know everything about how the acquired company works. Consider keeping the previous owner on as a consultant for a brief period of time, so that you can ask questions and learn what you need to know about the company you have acquired.

Look at Acquired Company's Customer Service Policy

You may be focused on the products or services that your acquired company brings to your business, but it is also a good idea to familiarize yourself with their customer service policy. It is important that their policy be in line with yours, now that they will be operating on your behalf. For instance, if you allow returns within 60 days but the acquired company only allows returns for 30 days, you need to make changes so that your customers can continue to get the same service they are used to getting from you.

Meet with Employees

It is a good idea to talk to your current employees about what will change as a result of the acquisition. For example, if you plan to promote or demote department heads because of incoming talent, that might be something to mention. If the acquisition means more work for your existing workforce, talk about the company will change to meet those demands.

You must also take time to meet with the employees of the company you are acquiring. Consider that they may be unsure of their employment future and what your company will do with them. Be honest and let them know if you are planning layoffs; talk to them about your goals and how you plan to use their workforce to meet those goals. If you plan to implement rules they are not comfortable with, announce them as soon as possible. Do your best to allay fears and concerns so that they are ready to get back to work.

Seek Employee Feedback

As the acquisition gets underway and your companies start working together, It is important that you seek feedback from employees in both companies. Hearing from employees affected by the acquisition can help you to make better decisions about how to conduct business going forward.

Use the suggestions above to help you when you're acquiring another company. Be sure to work with a financial planner such as RLS Associates to make certain that your profits continue to grow as a result of the merger.