Inorganic growth: Is it positive or negative to the executives of the buyer?

This topic contains 2 replies, has 3 voices, and was last updated by  Andre Hamilton 4 months, 2 weeks ago.

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  • #82033

    Enrique Blanco
    Participant

    Once a company decides to undertake an M&A process enthusiasm, apparently, is well spread all along the organization.
    However, will the executives from the buyer side benefit from this potential acquisition? Just a few can see a potential lever for a future promotion. For the majority all the Due Diligence process + PMI will it be seen as an opportunity or as a headache to combine their daily job with all the extra work ought to be put in place?
    Will their own employees be the worst detractors for the inorganic growth in many cases?

    #83155

    Mohamed Emara
    Participant

    Proper communication on both sides the acquirer and the target can resolve such issues. Communication absorbs many of the resistance and aggressive move expected from some employees and/or executives. Eventually, employees need to have a reason for either staying or leaving. Poor communication may lead high performers to leave. Extra work will be there; however, effective merger plans organize and facilitate the processes and give the confidence that “it can be done”.
    Inorganic growth might be tougher due to increase of differences between business models of target companies, but proper plans can help.

    #110567

    Andre Hamilton
    Participant

    I also agree that communication is key throughout the process. There will be new areas for value add that some employees will take advantage of, however there will be a segment of the employee base that will see the potential acquisition as a detriment. This is where communicating clear and concise workflow structuring comes into play. If the employees can see the vision, and see areas for potential growth then there is a better chance of positive morale.

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