Companies have the possibility of merging with others, pooling their assets and forming a new organization. This operation is known as a merger of equals (MOE), and for it to be successful, eight key aspects must be addressed. .
1. Perform a complete and detailed assessment of the two companies and detect the synergies and coststhat the merger will generate.
2.Analyze the financial policies and the fiscal framework of both companies and define which one will be adopted by the merged company.
3.Establish a balanced relationship between the two companies: certain compromises must be made and some sacrifices must be made in order to achieve equality and stability.
4. Establish a clear organizational chart in advance to avoid conflicts.
5.Define the brand name under which the company will operate and the legal name: a new one, that of one of the companies or a combination of both can be adopted.
6. The corporate culturewill be different. One of them can be kept intact, a combination of both can be created or a new one can be generated. This will depend on the characteristics of the merged companies.
7. The internal and external policies and procedures of both companies must also be combined and fit into both merged companies. There are the same ways as in the previous point. Whatever the decision, tools should be provided and all employees should be notified of the changes implemented.
8. If the objective is to integrate the structures, culture and workforce of two merged companies, it is important to strike a balance between decisionsmade by individuals and decisions made by departments. The way a message is sent is key for the company.
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