Top Tips For A Company Acquiring Another
Top Tips For A Company Acquiring Another
* Staff morale: staff concerns about their job position can lead to strikes and loss of productivity.
* Payments: staff that are in equal positions in both companies but are on different payment structures/pension plans. The acquisition can lead to one losing out, or salary expenses increasing.
* Possibility of anti-competition government regulations.
* Power struggle of top directors/management – sometimes when one of the founders/MD of one of the acquired companies departs, the merged company can lose its focus, direction and vision.
* Not doing due diligence accurately can cause hidden expenses or unforeseen legislation to destabilize the concern- one good example are companies buying manufacturers who in the past may have being involved with Asbestos based products. These businesses could be exposed to extensive litigation in the future, which could almost bankrupt the parent company.
* Falling stock price of both companies can cause shareholder anger/concern (staff share option value decreases) as could be seen by the merger of AOL and Timer Warner.
* Clash of cultures can be severely limiting to a company- new rules and methodologies can cause key sales, accounts, IT, designers (sometimes the very reason you pursued the merger) to leave a company- causing instability and a “brain drain”, as can be sometimes seen when a more established technology business or Fortune 500 member tries to purchase a start-up company.
* Downgrading of one HQ to the dominant acquirer partner HQ can lose a certain essence, as many of the core staff chose not to move.
* Potential incompatibility between the different IT systems can lead to lost productivity and major expense and frustration while integrating their systems.
* In summary, it is critical to have transition committees set-up well in advance to iron out the most contentious issues.
For more information contact: johnryan@thebusinessshop.ie
Top Tips For A Company Acquiring Another - To learn more about this author, visit John Ryan's Website.
Like this article? Share it with your friends
Often times businesses that are for sale are not bought by an entrepreneur but by a larger concern. These acquisitions can cause many issues which delay the handover and cause loss of productivity. We have observed a number of trends time and time again with these types of transactions. Many of these hurdles can be overcome with prior planning. We’ve noted that the most common issues are:
* Staff morale: staff concerns about their job position can lead to strikes and loss of productivity.
* Payments: staff that are in equal positions in both companies but are on different payment structures/pension plans. The acquisition can lead to one losing out, or salary expenses increasing.
* Possibility of anti-competition government regulations.
* Power struggle of top directors/management – sometimes when one of the founders/MD of one of the acquired companies departs, the merged company can lose its focus, direction and vision.
* Not doing due diligence accurately can cause hidden expenses or unforeseen legislation to destabilize the concern- one good example are companies buying manufacturers who in the past may have being involved with Asbestos based products. These businesses could be exposed to extensive litigation in the future, which could almost bankrupt the parent company.
* Falling stock price of both companies can cause shareholder anger/concern (staff share option value decreases) as could be seen by the merger of AOL and Timer Warner.
* Clash of cultures can be severely limiting to a company- new rules and methodologies can cause key sales, accounts, IT, designers (sometimes the very reason you pursued the merger) to leave a company- causing instability and a “brain drain”, as can be sometimes seen when a more established technology business or Fortune 500 member tries to purchase a start-up company.
* Downgrading of one HQ to the dominant acquirer partner HQ can lose a certain essence, as many of the core staff chose not to move.
* Potential incompatibility between the different IT systems can lead to lost productivity and major expense and frustration while integrating their systems.
* In summary, it is critical to have transition committees set-up well in advance to iron out the most contentious issues.
For more information contact: johnryan@thebusinessshop.ie
Top Tips For A Company Acquiring Another - To learn more about this author, visit John Ryan's Website.
Like this article? Share it with your friends
| |||
 |
No article feedback found. | ||
|
Leave Your Feedback | ||
|
|||
 “Your Strategic Thinking Coach’s Top Ten Positive Impacts From Coaching”
| |||
| There has been a tremendous growth of interest in coaching during the past ten years and coaching has evolved into a culture in many successful companies and organizations. I believe that in today’s business world,... |
|||
|
Due Diligence
| |||
| Most businesses need licenses and permits to operate. The type of license or permit you need depends on your industry and the state in which you are located. License and permit requirements also affect where you loc... |
|||
|
Bookkeeping Tips on Tips
| |||
| Are you a hairdresser, waiter or waitress? Do you work at a barber shop, golf course, hotel, casino or drive a taxicab? Did you know that the money you receive from those services is taxable income?
Here are som... |
|||
|
Are You Relationship Marketing
| |||
| Customer relationships are the lifeblood of any good company. |
|||
|
Business Loans
| |||
| One of the keys for a company’s continued well being is money. Having the money to spend to maintain and improve a business is essential in keeping up with the fast paced environment we live in. |
|||
| |||
John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. - Visit Jeff Foster's Website |
|||
|
Joe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: http://www.business901.com Web/Blog: http://www.FundingYourNonprofit.com http://www.linkedin.com/in/business901 – Linked In http://www.twitter.com/business901 – Twitter - Visit Joe Dager's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Bernard ReberBack in late 1992, MS Access hit the streets. About that time the company I managed needed new software to handle their growing client base and I decided to try this new product. I had little difficulty writing and adapting a database to suit us and discovered a hidden talent for programming. A business was born. With business studies and 25 years of management experience in three different countries under my belt, I could offer a unique combination of skills and my customers agreed. From these humble beginnings my software 'invoiceit' emerged in 1999 and has since been taken to 49 states (hello Wyoming, won't you join us?), all across Canada and more than 70 other countries. From the very beginning the program included cashbook accounting, the simplest form of keeping financial business records. The Dictionary.com defines 'cashbook' as "A 'book' in which to record money received and paid out". For 'book' substitute 'simple software' and that's what I'm about. Now I have published Simple Accounting, an inexpensive spreadsheet solution which even you can master. For just $14.95 it costs less than a takeout meal! More at http://www.scrambled-card.com/simple_accounting_main.htm - Visit Bernard Reber's Website |
|||
Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
|||
Michel NerayMichel Neray has over 25 years of experience as an award-winning copywriter, an Internet pioneer, a tradeshow pitchman and a senior sales and marketing executive. An online pioneer, he was one of the first marketing professionals to embrace the Internet by building websites as early as 1993. In 1994, Michel co-authored a book entitled "The Great Crossover: Personal Confidence in the Age of the Microchip", which made it to Jack Canfield's Achiever's Recommended Reading List. Michel founded Portfolios.com in 1995, the world's first online source directory for creative professionals and one of the first websites based on community generated content. Since creating The Essential Message in 2003, Michel has helped thousands of independent professionals and entrepreneurs as well as growing corporations find a better way to differentiate, position and brand themselves. In 2005, his chapter "Everything Starts With A Conversation" was selected as the lead for the book, "Sales Gurus Speak Out" and re-published in 2008 for 'Awakening The Workplace Volume 3'. He is also a co-author of "In the Company of Leaders" (2008) with 40 top North American leadership experts. - Visit Michel Neray's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
 John Ryan (Visit John's Website) www.thebusi nessshop.ie is Ireland’s only online directory committed to supporting business opportunities. It was created to fill a void that currently exists for those seeking to buy or sell a business in Ireland. Until now, most business owners used two primary routes for selling their businesses: expensive, one-off, mass-market newspaper advertising and/or enquiries through their accountants. Both methods are limiting and time-consuming. On the other hand, those buying businesses were restricted to placing expensive and untargeted advertisements, searching newspapers and trade magazines in the hope that opportunities will be advertised there, or to making enquiries through their own personal network of business contacts. thebusinessshop.ie is designed to be the first port of call for anyone seeking to buy or sell a business in Ireland. The website currently incorporates businesses for sale, franchises and businesses seeking partners. It is designed for every size and type of business in Ireland, from the smallest home-based businesses to large companies with international operations.
|  |
 |
|
|
 |
|
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 | ||
|
||
|
||
 |
||
|
| ||
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 |
 Law of Attraction in Action Networking Difference In A Decade Employee Engagment Confidentiality Agreement Romance to the Dance |
|
 | ||
 |
Top 50 Diversion Blogs
Top Diversion Blogs of 2008 | |
 |
Top 50 Productivity Blogs
Top Blogs To Watch In 2008 | |
| ||
 |
|
|
|
|
||||||||||||
 |
|
|
||||||||||||
