With the rise in divorce rates in America, there has also been an uptick in films which focus on “blended” families. Blended saw Adam Sandler and Drew Barrymore (reluctantly) merge their two families, as did the far more raunchy Step Brothers. Of course, most of us still remember the original blended family film, Yours, Mine, and Ours, in which Henry Fonda and Lucille Ball juggle a budding romance and the upbringing of their combined 18 children. Despite the fact that both families reap many of the benefits of having two parents, chaos still follows.
A business merger or acquisition can follow a similar plot — and even though both parties stand to benefit from the joint venture, these undertakings are not without their fair share of conflict. In the last five years the construction and engineering industries have seen a significant uptick in business mergers and acquisitions, and more and more businesses are looking for ways to get the most out of this process, while avoiding some of the common pitfalls associated with the process.
Below, the team at MNCLS has highlighted a few crucial steps Minnesota business owners can take to ensure their potential mergers and acquisitions don’t cost them their business — or their sanity.
Know Where You Stand
In order to get the most out of a business merger or acquisition, you have to know your worth. You’ve devoted a good chunk of your life to building this business, and in order to give up a portion of your ownership the price will have to be right. If you feel that a potential synergistic partner is not seeing the true value of your business, business owners should get to work on creating leverage through other partnership opportunities. Above all, though, you have to know when it’s time to take what’s on the table — and when it’s better to walk away. There will be other opportunities, and settling for unfair terms can only hurt you.
Find a Fit
The price might be right, but is there a culture fit? In the case of a business merger, the wrong partner can spell disaster — with cultural shortcomings being one of the key reasons business mergers fail. In this instance, culture can mean things like management styles, willingness to embrace new technologies and innovations, or core values. Merger and acquisition partners that cannot find common ground on these key issues face a lengthy (and costly) battle, and might realize they’re better off going their own way. With the right cultural fit, business mergers and acquisitions can prove fruitful for both parties. Without it? A clash worthy of the silver screen is just waiting to happen.
Eyes on the Prize
Why are you considering a merger or acquisition in the first place? Are you looking to narrow your margins with the help of a partner or expand your construction business to a larger market? No matter your initial reason for considering a merger or acquisition, keeping your objectives in mind can help you head down the right path. Further, keeping your eyes on the prize throughout the merger process will ensure that decisions are made with consideration of the end goal — so long as both parties have the same end goal in mind.
Hone Your Strategy with MNCLS
Before you explore options for merger or acquisition partners, partner with the business law experts at MNCLS. In addition to making sure that your objective is clearly outlined and you’re taking steps in service of your end goal, MNCLS can help you build a long and short-term strategy to put you and your business in the best possible position. Having built our careers in the construction industry before becoming lawyers (and business owners,) we know both the legal and business side of mergers and acquisitions — and can make sure you’re capitalizing on the value you’ve spent years of your life building.
Whether you’re merging, acquiring, or being acquired, MNCLS can help. Complete our online contact form or give us a call at (651) 484-4412 to get your business merger started on the right foot.