Thus, it is believed that some of the information in the paper may be unintentionally out of date. .
3. Strategies for Successful Mergers and Acquisitions 2.
In order to ensure the success of mergers and acquisitions, firms should consider the following factors:.
3.1. People, not money, make the wheels turn.
Appropriate funding and growth potential are critical factors for a successful acquisition or merger involving a privately held company. However, the people who come as part of the acquisition could be one of the most important assets gained by the acquirer. Unfortunately, there are frequently a lot of people who get overlooked in the acquisition process - especially lower-level employees who may be able to offer valuable input. .
All companies need to remember it is the people who produce profits, represent the company, establish rapport with the customers, and, ultimately, are the ones that will make the combined company succeed. When we are dealing with privately held companies, especially family-owned companies, divergent business cultures and philosophies can also be major obstacles to success of Mergers and Acquisitions, as are personal egos that can create friction among top managers of the merging companies. .
As is frequently the case, the owner or owners of the company being acquired have a strong psychic investment in the company, which they may have owned individually or as a family for many years. They probably started the company, made it grow, and are often reluctant to let go. Along with financial and operational considerations, we have to address these types of cultural issues.
Communication throughout the Mergers and Acquisitions process is also a key to a successful merger. This requires communicating fully with the employees, customers, and suppliers. If possible, managers of the acquiring company should try to meet personally with spouses and families of top and mid-level managers of both companies.