When considering a company for acquisition, it is critical to assess whether that company’s culture will align or clash with what is already established, says Bill Scheller, CEO of BlackHawk Industrial, Broken Arrow, OK, in M&A: Easing the Transition.
If a company is “more about ‘my way’ than collaboration,” it can be a recipe for disaster, he says.It is important to spend time getting to know the company before signing any papers.
According to Scheller, acquiring a company is like getting married; you are blending two families. “It’s about being comfortable with your in-laws and happy with spending Christmases together,” he says.
Be open with employees about what to expect to lessen some of the skepticism they may feel about the changes to come. Open communication also gives the new company the opportunity to explain its goals, history and processes – valuable insight that can be used for easing the transition.
Read more about the importance of cultural alignment in M&A: Easing the Transition.
