Best Practices for Remote Merger and Acquisition

It’s not uncommon for business leaders to join or acquire companies in order to expand their businesses. But when those businesses are located entirely or partially remotely it can make for an interesting combination. This article will look at best ways to make an effective merger and acquisition.

When a company is bought by a buyer, the buyer will typically offer cash, stock, or a combination of the two to purchase the company’s assets, and assume its debt. This is often a better alternative to a full acquisition because the acquired company’s name and structure remain intact.

However, the acquired company will have to incorporate its culture with the target one to be successful in the process of integration. This will require an exhaustive due diligence on culture prior to the acquisition. Particularly for remote-worker companies, this could be a problem. Employees won’t be able bond over cocktails or build new relationships at a team-building event and need to be quickly brought together to allow the M&A to succeed.

Establishing a clearly defined and concise integration plan at an early stage is crucial to M&A success. It is essential to establish a team that will design and execute the integration. The team is often referred to as an IMO (Integration Management Office) and should comprise of both external and internal experts. This group can keep the process of integration on track, provide guidance and be accountable for the process. It could also serve as a source of truth throughout the transition for employees.

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