What You Need to Know after a Company Takeover


Mergers and acquisitions are incredibly common. We often take them for granted, but never really think about what it means for the people who work within the companies that have been affected by it. When you want to learn more about company mergers, therefore, you should also have a look at what it means for staff.

Seven Things to Be Aware Of

Seven specific things will happen after a merger or acquisition and there is nothing you can do about it other than be prepared and contingency plan. These things are:

    1. Everything will change. It doesn’t matter who did the acquisition and how much they will promise things will stay the same, they won’t. They simply haven’t got a true long term plan in mind yet, and will let things develop as they come along. Change is inevitable.
    2. The systems will change. It is likely that you will have at least one new piece of software to get used to. Information has to be merged between the two companies, and this inevitably means that something has to give. This will lead to overtime.
    3. Your salary will likely change. This is because there was no consistency in pay between the two companies, and there needs to be now. Unfortunately, you won’t know whether this is a good thing or a bad thing for you personally until it happens.
    4. Your company benefits will change. This is the same as with the pay. In an ideal world, all the benefits of both companies will be integrated, meaning everybody wins, but this is very rare.
  1. Communication, in the beginning, will be incredibly poor. People don’t know who to speak to about certain tasks and issues, because roles have changed, as have responsibilities. Furthermore, those who are in charge are generally too busy at the start of these new operations to handle the smaller details.
  2. Management will shift, and this is perhaps the biggest change of all. Both companies will have had a senior manager for different departments, which means there are two of everything where only one is needed. This inevitably means job losses, but also getting used to new managers and leadership styles.
  3. The atmosphere will be pretty negative for a while. Again, this is inevitable. People are naturally resistant to change, no matter how much they know it is necessary. They are worried about their pay and benefits, and perhaps even their job. They have to deal with the above six points, and it can be too much to then also be expected to have a smile on their face.

In many cases, companies wholly underestimate the impact that a merger or acquisition has on the core of the business: its manpower. This is a shame because, without productive staff, nothing can continue. Should you be in a position in which you are negotiating a merger and acquisition, you may make the process a lot more successful from the start if you are aware of this.