There are three key factors to understand when merging or acquiring a new company to join your brand.
- Brand Enhancement
It’s important when thinking about acquiring a new company that the existing culture matches the culture they are blending into.
As early as possible in the acquisition process, to be successful, the Companies vision and values must be clearly defined and aligned. The leadership must commit to integrating the team into the culture by living the CORE values, expressing them clearly to all and keeping the lines of communication open and flowing freely.
Having an open-door policy for transparency and clear dialog is essential to a smooth transition when blending companies.
Diversification can be an asset and a liability. For example, in our business model we chose to focus on residential and light industrial “home” service brands that compliment each other. We diversified our portfolio not only with like minded individuals, but with companies that complimented each other and can generate lead flow across all brands.
If we partnered with a company such as a shoe store it would diversify our portfolio but how much value would it add to our brand? The company itself would flounder because the synergies just wouldn’t match, and the people involved would evidently feel unvalued and resentful.
It is important to play off each other’s strengths, not weaknesses and blend together in a way that makes everyone not feel threatened. It can be a delicate dance. Team members who have been with the brand a long time have become comfortable and developed strong identities within their roles. It can be difficult to introduce new members to the team and have a symbiotic relationship right from day one.
Diversity is something to be celebrated not feared. Having a strong CORE Value embedded within the team enables us to onboard a new brand and new people without the fear of others having to lose their positions. They want to help others become successful for the betterment of the brand.