Tip: Build Employee Trust for Smooth M&A Deals - Modern Distribution Management

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Tip: Build Employee Trust for Smooth M&A Deals

Being open with employees about M&A plans makes the transition process easier.

Creating a high level of employee trust is essential for a smooth transition after a merger or acquisition, says John Diaz, president of Impact Industrial Supplies, Tampa Bay, FL, in Case Study: Stellar’s Impactful Deal.

According to Diaz, Impact's history of open communication and a “full disclosure” environment helped ease the transition and integration process when Stellar Industrial Supply, Tacoma, WA, acquired his company earlier this year.

Keeping employees informed about merger and acquisition plans will prevent panic. Without that transparent culture, "the announcement is not going to float as well as it could, and both sides are going to have a lot of headaches that they’re going to deal with,” Diaz says.

Read more about building trust among employees to create a smooth M&A transition in Case Study: Stellar’s Impactful Deal.

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