8 Steps to Retain Key People in a Merger

PSMJ Resources, Inc.
Posted on: 10/19/16
Written by: PSMJ Resources, Inc.

merger_imageThe success of a merger hinges on how well your architecture/engineering (A/E) firm’s management communicates with employees and how fast you resolve employee uncertainties about the deal.

 Here’s how to tackle the upheavals that come with a merger and not lose your key employees along the way.

  1. Act fast. Don’t allow rumors to spread and start employees worrying about the transition.

  2. Make a plan. During the course of a merger, and before signing the deal, make a plan for handling your people.

  3. Attack the critical players. Meet with key team members immediately and enter into employment agreements with them.

  4. Define a new direction. Give all employees a role in figuring out where the new entity should go, then set a vision for the new organization. Develop a road map of what the new company could achieve.

  5. Find and promote winners. To help employees cope with the transition, choose managers who radiate confidence and credibility.

  6. Level with people. Don’t procrastinate giving employees bad news, or you’ll risk losing trust and increase anxiety.

  7. Share some history. Tell employees what has happened after past mergers and acquisitions to assuage their fears and anxieties.

  8. Develop a contingency plan. Despite your best efforts, you must be prepared to see employees leave. Planning for this before the fact will help you fill vacancies more efficiently and with better qualified people.

Mergers & Acquisitions (M&A) activity in the architecture and engineering space is certainly on the upswing and well on its way to reaching pre-recession levels. But, how ready are you for taking on the task of buying or selling an A/E firm? 

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PSMJ's complimentary ebook  M&A Survival Tips for A/E Firm Leaders can help you navigate through some of the thornier parts of getting started as well as implementing a realistic and successful M&A plan.

Yoo also might be interested in these other M&A related posts:

6 Ingredients For M&A Success

Expert Interview: Assessing Current M&A Market Conditons and Trends

How prepared are A/E firm leaders to undertake M&A?

M&A Insider: Five Ways to Make Your Next Deal a Flop!

M&A Insider: The Pitfalls of Buyer Stock as a Transaction Currency

 

 

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