Waypoints: Ideas and Insights to Navigate Enterprise Complexity

Many of us rely on lists and step-by-step instructions to get us through some of the simplest tasks in life, like grocery shopping. And yet, when it comes to something as complex as the sale or acquisition of a business, many entrepreneurs and executives are willing to “wander the aisles” aimlessly trying to figure a transaction out instead of doing the basic planning that they use to make a trip to the supermarket successful. If your business plan calls for a merger or acquisition, here’s a suggested checklist to keep your transaction on track.

If you ask a dozen executives if their goals for their companies include long-term growth, you would probably get a unanimous “Yes” from the group. If you then asked them to define what long-term growth looks like at their companies, you might get a dozen different answers. In order to prepare a business for long-term growth, the first step is to understand what exactly needs to grow.

As businesses were preparing to implement the Department of Labor's new overtime rule, a federal judge granted a preliminary injunction delaying its implementation. The injunction came just over a week before the initial implementation deadline of Dec. 1, and left companies uncertain about the best course of action.

From time to time, I talk with a retired HR executive who stays up to date on significant HR related issues. Lately, he’s been working on the new Department of Labor overtime rules, and I found his comments significant as we work towards the new rule’s deadline on December 1, 2016.

Are you ready to implement the Department of Labor’s new overtime rules when they go into effect on Dec. 1, 2016?

Lesson #1 – Never Underestimate the Value of Relationships

I recently witnessed the sad decline of a once powerful company, and I can trace many of its problems to mistakes made just after the company was sold. This company was a giant in its industry. Its team seemed to do everything right, and its standing in the marketplace seemed unassailable. At least, that’s what the buyers believed – nothing could shake this company’s position in the marketplace. 

You’ve closed the deal, and the new company is yours. You’re excited and ready to start putting your plans into action. What should you do first?

My advice? Do NOTHING.

Anyone who tried to sell a home during the Great Recession had to work harder than usual to make a good deal. It was a buyer’s market, flooded with inventory, and old tactics just didn’t sell houses. I think the lessons we learned in a recession-era housing market are valuable now in mergers and acquisitions. Here’s why.

Let’s admit it – mergers are exciting. You get to realize your company’s strategic plan and grow the company. The intricacies of negotiations can occupy all of your attention, and getting the deal right is incredibly important. But often, transition plans for managing the resulting company are lost in the process.