HOW TO THRIVE IN MERGER MANIA

By Terence M. Donnelly, Executive Vice President, Mandrake 

The announcement is out. Your company is merging with a big rival. What should you do? How will the company change? Will you get the job you've always wanted, or will you get a pink slip? Can you take a leading role in redesigning your company to generate the positive return envisioned by the board when they agreed to the merger? Can you see where your business will be headed as a result? 

In today's economy this is an increasingly common scenario many employees must face. But there are steps you can take to not only navigate the turbulence of a merger, but also potentially help steer the direction it is taking to influence the outcome.

Of course, one of the first things companies do once they merge is eliminate any duplication or unnecessary areas between them. You should be ready to develop a business case for why your position/department can offer more than the other company's, and how it will make and save money for the combined company. This means taking initiative, understanding the business issues at stake, and recognizing where value can be created by recommending and implementing processes or structural changes that demonstrate your business maturity, insight, and overall comprehension of what needs to be done.

Even though organizations must eliminate certain positions and departments during a merger, others may be strengthened. To know which areas are likely to thrive and grow due to their overall strategic importance, keep yourself informed about the status of the merger, and make as many contacts as possible within both companies. If your position or department will be reduced or eliminated, talk to managers in the remaining areas that interest you about transfers, or take the initiative to seek out employment elsewhere proactively. The waiting game for a severance package can be not only detrimental to your morale, it can also negatively impact a prospective employer's view of your potential value to their firm. After all, if you were such a star, why wouldn't they want to keep you at any cost?

No matter if you stay in your present department, transfer to a new one, or leave the company altogether, this is a good time to rethink your skills, experience and what you value in a corporate culture. Being open to new challenges and experiences can many times lead to a better position, or an altered or expanded accountability in your current role. 

A merger is always about two corporate cultures coming together, one usually more dominant than the other. As an employee it's natural to have feelings of apprehension and resentment and focus on the negatives of the situation. However, try to understand the new culture and focus on the positive aspects of the merger. By displaying this supportive attitude, and being proactive about where you and the business are headed, you demonstrate your commitment to building your employer's business - a valuable skill in any organization. 

If you're reading this and you believe your company isn't in the process of a merger, don't think you're off the hook! The best way to be prepared in the event of a hostile takeover or sudden merger announcement is to keep yourself informed about your organization, and what position it holds in the marketplace you operate in. In this age of global consolidation and increased competition, you can never assume that your employer's position in the market is unassailable. There's always a bigger fish somewhere in the ocean! Stay current by reading financial and trade publications that may give you clues that your company may be heading down the merger path. And take the initiative to inform your employer about opportunities that may exist for you to acquire or merge. The only sure way to control your destiny is to carve the path ahead yourself!

Terence M. Donnelly leads the Internet and Information Technology practice areas and has spearheaded the development of the firm's Merger and Acquisition practice. 



We welcome your feedback on these articles.  Please e-mail us at pointofview@mandrake.ca .

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