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As business leaders strive to grow their companies It’s not uncommon for a merger or acquisition to occur. If these businesses are located remotely or partially they are, it could be a very interesting combination. In this article, we’ll look at the best practices to ensure a successful remote merger or acquisition.
Typically, when a business is bought, the buyer will offer stock, cash or an amalgamation of both to purchase the assets of the target company and take over its debt. This can be a simpler alternative to a full takeover because the acquired firm’s name and organizational structure are retained.
To be successful in integrating, the acquirer will have to integrate its culture with the company it is aiming to acquire. This will require rigorous due diligence regarding culture on the front end. This can be a significant problem, particularly for companies that operate remotely. Employees will not be able to connect over drinks or create new relationships at a team-building event and need to be quickly brought together in order for the M&A to thrive.
Establishing a clear and concise integration strategy at an early stage is crucial to M&A success. It is also essential to set up an appropriate team to oversee the planning and execution of that integration. The team is sometimes referred to as an IMO (Integration Management Office) and should consist of both internal and external experts. This group can help keep the integration on track, provide expertise and accountability for the process, and act as a single source of truth for employees during the transition.
