Best Practices for Remote Merger and Acquisition

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When business leaders are looking to grow their companies, it’s not uncommon for mergers or acquisitions to take place. However, when the businesses are located entirely or in part remotely, it can make for an interesting combination. This article will look at best practices for the successful merger and acquisition.

If a company is purchased in the process, the buyer may offer cash, stocks, or a combination of the two to buy out the target company’s assets and to assume its debt. This is a better alternative to a full takeover, as the acquired company’s name and structure are retained.

To be successful in the integration process the company acquiring it will have to integrate its culture with the company it is aiming to acquire. This will require strict due diligence on the cultural front end. This is a huge issue for businesses that operate remotely. Employees won’t be able to connect over drinks or create new relationships during a team building event and must be quickly brought together to enable the M&A to succeed.

The creation of a clear and concise integration strategy early on is critical to M&A success. It is also essential to create an appropriate team to oversee the preparation and execution of that integration. This team is often referred as an IMO (Integration Management Office) and should comprise of both internal and external experts. The group should help keep the integration on track, offer guidance and accountability for the process and act as a primary source of truth for employees during the transition.

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