Mergers And Acquisitions
Mergers and acquisitions have become commonplace in today's corporate arena. This article provides information about how a merger or acquisition may affect you -- and how you can best adjust to changes in your company's structure and culture.
| Dan works for a computer software corporation in New York that is merging with a Chicago-based company. Dan says, "I am concerned about the changes that my department may be facing because of the merger. The other company's vision and philosophy are very different from what we're used to. How can I make the transition as smooth as possible for me and my department?" |
What Are Mergers and Acquisitions?
A merger takes place when two companies come together and reorganize into one -- usually more profitable and more powerful -- organization. An acquisition occurs when one company buys another and takes control of some or all of its employees, assets, products and profits.
Making the Transition
If your company has merged with another or has been acquired, it will probably undergo some corporate restructuring. As a result, new policies and procedures may be formed and old policies may no longer be needed. In addition, companies that merge with or acquire other companies -- especially those from other geographic areas -- face the challenge of integrating two sets of employees who are accustomed to different atmospheres and expectations -- or corporate cultures.
Identifying Your New Corporate Culture
Mergers and acquisitions can have a powerful effect on your company's atmosphere, policy and traditions -- some of the important components of an overall corporate culture. In fact, it is the small changes -- in dress code, paid time off, lunch hour, etc. -- that may create the greatest challenges. As a result, all employees will probably need to adjust to the overall objectives of the new corporation. By recognizing this, you can help blend the philosophies, traditions and corporate atmosphere.
Tips for Employees
The following tips may help you successfully adjust to the changes you may experience as a result of a merger or acquisition:
- Maintain a positive attitude. Any type of change can be difficult and negative feelings are normal. Keep your spirits up and your selfesteem intact during the transitional period. Lend a helping hand whenever possible and keep doing your job despite the many disruptions you may experience. Remember that the changes do not reflect your ability to do your job but rather the company's desire to adapt and grow.
- Remain flexible and open-minded. Be tolerant of management changes and remain open to new policies and procedures. They may wind up working to your advantage.
- Think of it as a career opportunity. Evaluate your current job and determine what aspects you like and what you would like to change. Assess the new professional opportunities that may become available due to the merger/acquisition and how you might take advantage of them for positive change.
- Investigate changes to your benefits or compensation. If there are going to be changes, learn as much as you can about the new package. Make sure you talk to your human resources representative about any questions you may have.
For many companies experiencing a merger or acquisition, layoffs are inevitable. Whether or not you lose your job because of company layoffs, these changes can be stressful. If you are affected by your company's layoffs, please contact your EAP (Employee Assistance Program) for support.
| Tip: Keep in mind that even though jobs may be eliminated or restructured during a merger or acquisition, new job opportunities may also be created within the company. Talk to your manager and discuss your interests and goals. Reinforce the fact that you are willing to adapt and learn new skills. Your cooperation and enthusiasm shows management that you are excited by the changes and are willing to be flexible. |
Tips for Managers and Supervisors
Managers and supervisors are crucial to the successful integration of companies involved in a merger or acquisition. To help effectively manage the transition, keep the following tips in mind:
- Be sensitive to your employees' concerns. During a merger or acquisition, employees often worry about job security and may experience a range of feelings including anger, stress, uncertainty, depression and fatigue -- and this may cause productivity and morale to suffer. By exhibiting awareness of your employees' concerns and acting with compassion and honesty, you can restore a positive, productive environment more quickly.
- Create a forum for discussion with your counterparts. Meet with employees and management from the other company either formally or informally to discuss effective ways to integrate the best policies and strategies. If needed, come up with alternatives or compromises for executing projects.
- Facilitate communication between the two companies. Set up workshops and activities designed to create new work teams from both companies and increase morale and camaraderie.
- Create a new mission statement. Define the overall goals and priorities of your individual employees, new department and the company in general. Flexibility is key in executing mergers and acquisitions successfully.
- Keep the lines of communication open. Since rumors -- especially false rumors -- can be detrimental to company morale and can damage the reorganization process, establish a reliable communication system (newsletters, teleconferences, staff meetings, intranets, email reminders, etc.) to keep employees informed.
- Be honest. Provide employees who may be facing layoffs with an ample amount of time to adjust to the announcement and begin their search for a new job. Also, be aware that layoffs can cause a great amount of anxiety and low morale within your company for all employees -- even those who are keeping their jobs. Remind the employees still working for you that they are valuable members of the team -- and keep them motivated through encouragement and sensitivity.
- Ask for help. Collaborate with your human resources department during the transitional period to discuss any concerns or problems and smooth the integration process.
A Final Note
Undergoing a merger or acquisition with another company can be a stressful event. If you are feeling overwhelmed by the changes taking place at work, consider taking a stress management course. Or, ask if your employer offers an EAP (Employee Assistance Program) that provides free emotional support on a variety of issues. Your human resources representative can tell you what services are available and how to contact them.
Source: "A LifeCareR Guide: Mergers and Acquisitions." Copyright 2009 LifeCare, Inc. All rights reserved.
This publication is for general informational purposes only and it is not intended to provide any reader with specific authority, advice or recommendations. Where you deem necessary, we suggest that you seek advice regarding your particular situation from the appropriate professional.
Copyright LifeCare®, Inc. All Rights Reserved.
2 Armstrong Road, Shelton, CT 06484.
