Assess your preparedness
Mergers can deliver long-term advantages, but also come with significant short-term risks, which need to be identified and addressed early. While the risks are reduced before formally engaging in merger discussions, there are two threshold requirements which must be met before undertaking further preparation for a merger. These are:
- Adequate enthusiasm among leaders – A successful merger requires leaders that are focussed and advocates for the merger. Engage most senior and influential potential opponents to the merger as early as possible. Criticism of the process behind the scenes can hinder the necessary momentum and goodwill required to implement a merger successfully. Your selection of leaders is therefore critical.
- Sufficient resources – Mergers also demand a specifically allocated budget, time and staff expertise to manage the change effectively. Consider whether you can afford to allocate existing resources to a different purpose for a significant period. If you are unable to source pro-bono legal/financial/audit assistance, you may need to engage external advice, which has to be factored into the budget.
Please feel free to leave questions or comments on this part of the merger toolkit.