May 17, 2016
by Klaus Uhlig
Whether it’s buying, selling or raising capital, every detail of a business transition must be flawlessly executed. During this time, a transaction needs to be negotiated and proper procedures for evaluating, procuring and responding to definitive offers need to be evaluated.
It can be a lengthy process and at times, can suffer from deal fatigue on the road to a successful outcome.
So where does a creative agency fit into this piece of the transition puzzle? It’s definitely just a thin wedge, but it’s an extremely important one. Because it’s during the gruelling time when all parties involved are heavily focused on closing a successful deal that the ball often gets dropped on the day-to-day activities of the business and its employees.
Consider this common scenario:
Employees frequently see the company president meeting with ‘advisors’ in the privacy of his office. This gets the rumour mill started amongst employees who begin to fear the worst and assume that their jobs are at risk because of a suspected change in management. Many then begin searching for employment opportunities elsewhere, just in case. As the president, owner or CEO, this should be a huge concern because your soft assets – your key people – are one of the most crucial components that your company has to offer up to perspective investors. They were your building blocks, weren’t they?
This type of situation can be easily avoided through effective internal communication. A transition need not be a secretive process – rather good communication is necessary to ensure that throughout the transition process, your company retains its human capital. “Very successful deal makers who include people indicators (human capital) in their transactions show a nearly 35 percent greater success than those who don’t.”1
Mergers or acquisitions fail for all kinds of reasons. But the biggest cause of failure is because competitors poach a company’s top intelligence – intelligence that fear their jobs are at risk – during the transition process.
There’s a whole level of communications that must happen to ensure you retain your human capital. At uhlig.ca, we bring the strategic know-how to take on that internal advocacy and communications role to give your transition the best possible shot at success.
1. People Issues in Merger and Acquisitions, CERF Executive Research Report, 2010.