
Ensure you have shared goals
The first step is to ascertain that both companies have shared business goals and objectives. Is there anything you disagree on? Do you undertake different practices in relation to similar areas that could cause friction? These are questions that directors should pose from the initial discussions to identify whether the merger is in the best interests of both companies.Strategise
Once you have ascertained an understanding with the company you are merging with or acquiring, it’s time to enlist the services of a business advisory specialist. An expert can assist companies on effectively restructuring the business, the legal implications, tax considerations following a transaction, and also any future business forecasts which could occur as a result of the new company structure.Have enough liquidity in the business
Determining financial stability ahead of conducting mergers and acquisitions is essential to safeguard the continued growth and success of your company. Available liquidity, or funds, is a frequently overlooked aspect, but it is among the most vital. Not only is this important to establish in the company you may be merging with or acquiring, but it is also crucial to assess your own liquidity. Without assessing your available funds, entering into a merger and acquisition could put the business at risk, and make the transaction unsustainable.Organise your due diligence
When merging or acquiring a business, it is essential that both parties provide sufficient financial information in a prompt and organised manner. By organising all the relevant information, this will assist in identifying any problems before a transaction progresses. This process is known as due diligence.Office culture and staff integration
Mergers are acquisitions are very much the forming of a new organisation. However, each company involved in this transaction will have its own pre-existing teams who are familiar with their own company culture, policies, and areas of responsibilities. Employees will automatically transfer in accordance with the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). Managers looking to blend teams and offices could ease the transition at an earlier stage by encouraging frequent communication between staff from both organisations. Ensure that they communicate openly from the start to establish an integrated and successful working relationship. Craig Blackmore is director of Verde Corporate FinanceShare this story