You’ve probably read stories of companies that merged and went on to achieve great success. You may also have read tales of ones that merged and self-destructed.
If you are considering a merger, you need to ask is it right for me? To answer that question, you need to ask yourself a host of lesser questions, such as those that follow.
Why do I want to merge?
So you want to increase your market share? OK, but by how much? If your goals are unspecific, you have no way of assessing the chance that a merger will get you there
Why do I want to merge with this company?
There are millions of companies out there, so why this one? What do they bring to the table? A company may seem fantastic from the outside, but what are they like when you dive deep inside? Do they have talents or abilities that you lack?
Why does the other company want to merge with me?
What expectations does the other party have of you? While they might see you as the next Steve Jobs or Martha Stewart, is that realistic? Can you live up to the image they have of you, or are they likely to find out you got where you are via a few lucky breaks and make waves when you cannot bring them the miracles they hope for?
What will I have to give up?
It is unlikely that you need all the current staff you and the other business have, so there may be job cuts. Are you willing to accept that may include your team members? Consider things such as company values. Yes, you might make more money, but are you willing to compromise core values in the process?
Are there alternatives that could help me reach my goals instead?
Mergers are complex, so it is essential to ensure there is no simpler way to get to where you want to be alone. If you still think you want to merge, you will need help to undertake due diligence and draw up the legal agreements.