It’s not unusual for business leaders to merge or acquire companies in order to expand their businesses. However, when the businesses are located entirely or in part remotely, it can make for an interesting mix. In this article, we’ll take a look at some of the best practices to ensure the success of a remote merger or acquisition.
When a company is acquired, the acquirer will offer stock, cash or a combination of both to purchase the assets of the company it is targeting and take over its debt. This is a more straightforward alternative to a full takeover because the acquired firm’s name and organization are preserved.
However, the acquired company will still need to merge its culture with the target one to be successful in its integration. This will require an extensive due diligence process in the beginning. Especially for remote work era businesses, this can be a challenge. Employees won’t be able get together over cocktails or establish new relationships during a team building event and need to be brought together quickly in order for the M&A to thrive.
Making a clear and concise integration plan at an early stage is crucial to M&A success. It is also crucial to create an appropriate team to oversee the planning and execution of that integration. This team, which is also called an IMO (Integration Management Office) is required to include both internal and outside experts. This group will keep the integration process on track, provide expertise and accountability for the process. It can also act as a source of honesty during the transition for employees.