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How to acquire small business and keep employees happy

2017-07-10 15:26:48 | Legal Services
There are many books that however discuss the inner workings of the  big merger and

acquisitions deals but there are also a few that however delve into the purchase of a small

business -- a move that however  requires a different strategy. Small companies are also

 difficult in order to buy, but they can however  result in  tremendous benefits  to the acquirer

over the long term .

The book said that , they however rarely work out if they are thus  done opportunistically,

meaning that the  buyer is however  just looking for a "good deal."  

Thus the following article tells the eight steps that are however essential in order  to make the

process a success -- on both the  ends.

The steps however are :

1. Determine exactly as to what one aims  to purchase. When one is  buying a small

company, he might be buying the business thus  either for its talent or either for the

intellectual property to be applied to the business.

If one is  buying the business as a whole, one however  needs  to keep that business separate

thus  for at least 18 months and has to then let the team develop on their own with the  minor

points of integration. He must also thus let them however have their own success with their

own leadership team.

If one  is  buying the talent, he must  quickly move that the team off the existing product and

should then inject them into his business.

2. Respect the existing products and also  the customer relationships. Whether or not one

plans  to keep the existing business or is however either moving the talent into his  own

operation, he  must thus  respect as to what that team which is thus  built in the  terms of

product and also the   customer relationships. This is however what they have however sold

their soul to for either two or  maybe three years. If one is thus upset with  their customers or

has either  dismissed  their product through a lack of respect, one is however  going to end up

with a lot of very frustrated engineers on his hands. Even if one  only wanted the team, there

is however  a chance that  they thus will want to leave because they are thus embarrassed

with the fact as to what was done to their product.

3. Decide as to who will stay and who will be let go.

If one is buying a high-growth company in the internet space, it is observed that  typically 15

percent of that team will however leave. One must  ensure that he retains  the other 85

percent.

The person who is buying  and the selling company should thus know immediately as to  who

one  will want to stay and who one doesnt  mind losing. If he  does  not want a certain

members of the senior leadership, then one must  make the decision early on. One must Treat

them with  respect but should also  make the decision quickly. Any person who is however

beyond the 15 percent that one  lose should however  be seen as a failure, because everyone

however  plays a critical role in the DNA of a small company. So thus it  take the 15 percent

loss and one must also  work to not lose anyone else.

4. Don’t focus on inconsequential issues.

One must keep as many team members it is thus possible and should also  never lose people

over the inconsequential issues. One must thus not change the processes such as the benefits

or the other small things that however aren’t going to change the financial outcome of the

company.One must thus remember this is thus a growth asset and is also  not an efficiency-

driven acquisition however  for the most part.

5. One must thus put also a short-term material retention program into place.

It will thus indeed be a tough period for the  current employees, as there will however be a

change. One must thus  always remember that  these employees however has just lost a  hope

of  changing the world a little bit, so it is thus critical in order to get them through that period

and also thus  to convince them of the new leadership.

In order to help to  quell the  employee fears, one must put into place a short-term material

retention program.It is thus important in order  to remember the retention program thus needs

to be material and thus one must be at least be as big, or either double, as their expected

bonus. This will also  help the transition period and would thus also help in order to  retain

the  new talent.

6. Implement a long-term incentive program for the employees. Once one has  the short-term

process in any place, one must thus need  in order to put a long-term incentive program

 together that however  appeals to the hope employees had before. One is however also thus

investing for the future value of the acquired company, so one must  be sure that he should

thus  not to undervalue the  top talent with the  low long-term incentives. This is thus

 important, even if it however  changes the final deal price.

7. Intermingle the employees on a specific basis.

In order to build that cultural bridge, one must however take a handful of the employees and

should then  strategically switch them between the two teams. This thus however doesn’t

necessarily means  integrating the teams -- one must thus still keep them separate. But one

can thus  also  do swaps like taking his CFO and then  making them his  acquirer CFO. Or

one must either  take their HR person and should also put them on your team. This

intermingling of the teams at the  strategic level however  begins the overall integration that

one will thus eventually do 18 months down the road without however  pushing the

boundaries.

8. Dedicate a full-time position to the specific people issues. Thus, the most important point

in any however  deal is that it’s thus  the CEO’s job in order  to make sure that  the deal is

successful.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for Section 8 company registration, Nidhi company registration, IEC registration


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