Deciding the President in an equal Merger scenario

This topic contains 3 replies, has 4 voices, and was last updated by  Michael Maggiotto Jr 2 weeks, 6 days ago.

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  • #119262

    Peter Sakaitis
    Participant

    When two equals merge, and each company has a President (leader), how do you go about deciding who is the right person for the job (in this new Entity)

    #119349


    Participant

    Look beyond their current titles and go deeper into their resume for transferable job experience. Who has the most applicable experience? look at verifiable leadership accomplishments? And maybe most importantly, ask each about their vision for integration.

    #119368

    Cesar Otero Lucas
    Participant

    The most important thing is to guarantee that decisions can be taken. At the beginning it could be easy to have a Steering Committee with both of them. In several cases they change the Presidence of this Committe from one to another, defining a time for each (one year, for example)

    #119377

    This is a hard one. Rarely are there true “equals” in a merger. But in your hypothetical, it boils down to the transaction thesis. Who is best equipped to bring the reason for the merger into fruition? What behavior traits are critical and who has the best combination/track record of exhibiting these behavior traits? Will the competencies for the position change for the merged entity as compared to the current competencies within the existing independent entities? If so, who has the stronger inventory of competencies? What about the soft skills required to shepherd the smooth transition during integration and inspire a shared vision of the future for the new merged entity?

    These are critical starting points. Answer these questions and you will begin to see a clear singular leader.

    What is really challenging is not so much the “merger of equals” but rather the merger of head-strong leaders. Who will look out for the overall merger success by backing down first? Who will allow a smooth transition as opposed to making it a fight, a power struggle? A power struggle at the top is the worst thing for a successful transaction. It poisons the minds and hearts of all below as employees begin to take sides in support of their “champion”. A decision should be made whether a merger under such circumstances between these businesses is even possible. It may be better to walk away from the deal.

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