Things to Keep in Mind When Merging – By Ricky Ahuja

by Jenae Reid on October 26, 2017

In the current state of the market there are many affiliate networks that opt to merge with another company or be acquired by one. But this process can be very daunting.

Undergoing a buyout or a merger with another company, another culture can be an arduous task, so here are the top five things to keep in mind should you be looking to merge or be acquired.FeedFront issue 40 cover

Make a Perfect Merger/Acquisition Team

It is of utmost importance to have the most detailed and operationally inclined individuals from your organization that will oversee and handle the process of merging with another company. Experts advise to take the best employee from each of the company’s crucial departments and make a team that will handle this process.

Make Sure to Define Goals

Now that you have a team of professionals to oversee the process, you want to define your goals and milestones, so that you can measure the success and see if everything is going according to schedule. A plan without goals is not a plan, and you won’t be able to know if a merger/acquisition has brought the results you were expecting if you don’t define them. By having clearly defined goals in front of them, your teams will be able to make the right decisions in order to keep the merger or acquisition on track.

Assess Your Financial Stability

Before executing a merger or acquisition, it is of utmost importance to evaluate your company’s financial capability and current liquidity. I am not implying that profit and loss statements are unimportant, but evaluating liquidity is of greater priority than anything else.

If you don’t have enough liquidity to support it, the merger may fail, which can have devastating effects on the companies involved. Make sure to develop equity-capital strategies and have the means to handle a sufficient amount of debt before you embark on a merger.

Be Prepared for Integration and Compatibility Issues

As you may have guessed from the heading of this paragraph, you will have to make one more team. A team that will be equipped with strategies and solutions for compatibility and integration issues. No matter how well you define your goals and how efficient your overseeing team is, these issues will arise. Merging two cultures, processes and products is a difficult task. You will want to make sure to put people with strong leadership skills in charge as the transition will require tough decisions to be made.

Establish Good and Efficient Communication

Last, but not least, you should make sure to establish good communication channels between all parties responsible during the transition process. Sensitive business decisions, plans, and strategy will be implemented, and all involved need to be on the same page to progress forward. By putting the emphasis on planning, you will make sure that execution and transition go smoothly as planned.

 

Ricky Ahuja, a serial entrepreneur, fifteen-year veteran of the industry and Co-Founder of InvioPro.

This article appeared in issue 40 of FeedFront Magazine, which was published in October 2017. https://issuu.com/affiliatesummit/docs/feedfront-40

 

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