It’s not unusual for business leaders to merge or acquire companies in order to grow their businesses. However, when these companies are based completely or in part remote this can create an interesting mix. In this article, we’ll look at the best practices to ensure a successful remote merger and acquisition.
When a company is acquired, the acquirer will offer stock, cash or an amalgamation of both to buy out its target company’s assets and assume its debt. This is a more straightforward alternative to a full takeover, as the acquired firm’s organization and name remain.
However, the acquiring firm must still integrate its culture into the targeted one to be successful in integrating. This will require strict due diligence regarding culture on the front end. Particularly for remote-worker companies, this could be a problem. Employees won’t be able to make friends over a drink or develop new relationships during a team building event and need to be quickly brought together to allow the M&A to flourish.
At the beginning, establishing an organized and clear plan for integration is essential to the success of M&A. It is essential to establish an internal team that will organize and implement the integration. This team is often referred as an IMO (Integration Management Office) and should comprise of both internal and external experts. This group can help to keep the integration on track, provide expertise and accountability for the process and serve as a central source of truth for employees during the transition.
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