I wrote last month about three things to consider when contemplating a merger or acquisition. Let’s assume you’ve done your homework. The math makes sense. You’ve got the right team in place and you have a business plan for moving forward.
Have you considered the human aspect? While your decisions may center on sound financial projections, the personal element is equally important in paving a smooth path to a successful future together.
Oftentimes, the profitability of the M&A is predicated by the successes at the earliest outset of the relationship. While we understand it boils down to culture, the word culture is tricky for us because we must consider multiple parties—the principals of the deal, leadership, staff, agents and potentially ancillary services.
It’s all about the people. How do they work together? Are their goals aligned? Is there a healthy mix of thinkers and doers? Are they respected by their peers?
Assuming both parties believe there’s a fit, there must be an understanding that when the two groups come together, a new culture will form. Therefore, creating the basis for that culture is critical at the outset of the process and throughout the onboarding and transition.
Here are five tactics you can use during and after a merger or acquisition to ensure a seamless transition:
Mergers and acquisitions can be effective for profitable growth. Like anything rewarding, it requires time, effort, money and practice to be successful. Having a sound plan that considers all of the factors—including the human element—is key to success.
Rich DeNicola is the Chief Operating Officer for Realogy Expansion Brands—Better Homes and Gardens® Real Estate and ERA® Real Estate.
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