How to laser focus on your core business and legal activities during a merger or take-over situation?

In this Blog (#2) of Tandem Strategic Legal Advisory, practical guidance is given how to keep focus on those things that matter most during a merger or take-over situation. Let’s dive in. From the moment the letter (or email) arrives from your competitor or other interested party to acquire your company to the close of the transaction, many high pressure moments must be addressed.

What typically happens is that a large part of the organization “freezes up” like a rabbit in a headlight of an approaching car. Your role as management is to keep the troops focussed on the day to day business. Why? Well with the take- over bid or merger comes uncertainty. Will people keep their jobs and will those jobs be a demotion or promotion or a dead end street career wise. This can be a serious threat to the performance and even survival of your company in particular when the deal falls through. For one, the competition will be having a ball, targeting your customers with the story line that you are distracted by the takeover and that they are better off with your competitor. They will offer hefty discounts to convince them. If a take over or merger drags on for instance because of pending competition approvals; this is a serious risk.

So what to do? From the start it is important to inform the staff that they need to be focusing on the day to day and on those things they can control. And repeat this more than you feel necessary. This is the best way to avoid an impasse and implosion of your business. And it shows the acquirer that the target is a resilient company that can absorb a stressful situation. As management you can take pride in delivering ‘the goods’ in a proper state at the finish line. This in return should build mutual trust and increase chances for management to remain at the combined company post close. Feel free to contact me Tandem Strategic Legal Advisory if you would like to explore this important topic further.

Written by Tjeerd Wassenaar, Founder of Tandem Strategic Legal Advisory: “Contributing to bringing your Corporate Event to the finish line; in Tandem”