Managing the Drawbacks of Acquisitions

Growing a business by acquisitions is an attractive business strategy for expanding into new markets while reducing competition and gaining innovation and knowledge. Mergers and acquisition (M&A) boost organizational efficiency, profitability and power in the market share plus the client’s confidence. However, the M&As process, with all its legal and financial issues to deal with the workforce can include some drawbacks. Leveraging networking can become an asset during this process.

The acquisition process may have effects on the employee’s attitude and their productivity. The advancement of technology calls for leveraging networks to create more of an impact to solve some typical drawbacks of acquisitions including; clash of cultures, resistance from employees and dealing with different management styles.

Leverage Networking to Allow for a Smooth Transition

Long-term employees will most likely be resistant to the merge and may not be satisfied with the different management styles that they are not used to. There also might be a clash of cultures in relation to work ethic, dealing with new employees, technologies as well as timelines and schedules.

Networks allow you to build your brand, authority as well as leverage opportunities and talents. Even if the receiving organization is not ready for the thought of leverage networking, its undertaking must be implemented in order to create employee confidence and ensure a smooth transition during the M&A process.

In the case of incompatible working styles, most organizations find points for development and growth. They focus on strengthening certain employees while reassigning more adept employees – usually challenging them with more responsibilities. Keeping an open line of communication and keeping employees informed as to when and why the acquisition is taking place, along with leveraging networking, will help the acquisition process run smoothly and keep the acquired and existing employees happier during these times of transition.

Looking forward to your feedback on this blog post and to sharing knowledge with you!

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