In late 2021, after 13 years serving Northeast Wisconsin’s business technology needs, my company, Innova Technologies, joined forces with Impact Networking. This new partnership gave us the ability to deliver technology services to our clients—marketing, cybersecurity, print—and other cutting-edge technology solutions in addition to what we previously offered.
But combining the two companies wasn’t always easy. A lot of roadblocks and challenges came up during the process, necessitating major adjustments from all parties.
Though our two companies shared common values and a vision of what we wanted the future to look like, there were many technological hurdles to jump. Nearly every aspect of our business operations relied on our established tech stack, which was now under scrutiny and possibly about to be turned upside-down.
We now had to compare our tools to the ones that Impact was using. A lot of questions had to be answered to ensure we came up with the best solutions for both sides going forward. Are they compatible with our system? What are their features? Do they accomplish what we need? Do they do it in a better way? If we switch systems, how do we tackle that process?
These questions then needed to be asked about nearly every piece of technology we used in our day-to-day operations because, in order to be effective once both companies came together, there had to be technological alignment.
To tackle these problems in an effective and timely way, it took a lot of effort and collective brainpower. I’m often asked to share any advice I have for business owners or leaders who are going through a similar merger.
For business leaders, a lot of things are happening at once. It can seem chaotic, but it’s important to communicate clearly with everyone involved. This will help create a smoother transition during which ideas can flourish, questions can be asked freely and things can be improved and built upon in an open, productive environment.
This type of clear communication and transparency throughout gives way to more innovations than you’d think. You’ll often discover that certain functions can be accomplished through one tool rather than the multiple that used to exist, or that an acquired company has processes that work better than ones developed by the acquirer.
In this phase, it’s important to remember that everything needs to be on the table, everything can be improved upon and productive conversations‒without pride getting in the way‒are very necessary.
As a part of this, you need to question everything along the way. Don’t settle on a process or tool just because the larger company uses it. If leaders show mutual respect and truly listen, a merger is an ideal chance to do better by combining the knowledge and experiences of everyone on both sides.
It’s also important to show respect to the people on the ground who actually use the technology while working with clients and implementing your solutions.
In IT and many other industries, we often work within the three-step framework of people, process, and technology. While all are important in IT and all will be critical in a successful merger, it’s important to remember that, just like in the framework, people always come first. Despite all the troubles that can stem from technological adjustments, don’t forget that your team is at the heart of it all.
Your people got you where you are and they’re the ones who will get you through the process unscathed. A successful merger can’t be done without them. Whether it’s for your clients, vendors or employees, everything needs to be about the people behind the processes and technology and how this major change affects them. That can easily get lost among the chaos that erupts when two forces of business collide as they do during a merger. There are real people at the center who have to tackle not only the technological issues presented when adjusting to new tools and processes, but also the social adjustments.
For them, the entirety of their professional structure is suddenly upended. And as a boss, it was jarring when the buck no longer stopped with me and, just as suddenly, I had people above me making decisions. My main goal during the acquisition process was to ensure that the technology and overall business adjustment was smooth but also, more importantly, that my people could get through it without scars.
To do this, you need an open-door policy and to provide your employees with the same communication and transparency you give to the other business’ leaders. Provide spaces for them to vent frustration, ask questions, voice concerns and share ideas. It’s easy to be consumed by the chaos of organizing a merger. But remember that your employees are thinking about their own jobs, their roles in the newly combined company, their income and benefits, and their families.
For me, this meant being clear with our plan, touching base on a regular basis and defining what you expect of them and how their roles will change or evolve post-merger.
A merger is about more than aligning two companies—it’s about aligning your people and ensuring they have the tools they need to establish themselves within the new company. Be open to their concerns as they take your technological decisions into their own hands by learning new tools and adapting to new processes.
In addition, be diligent, don’t assume and make sure you understand the endgame of it all and how it’ll affect your people. To ensure a successful merger, it’s important to know that endgame before signing paperwork. Where do you want your business to end up? What’s the goal? Who benefits, and how can you make it easy for everyone involved?
Though merging two businesses is a high-stress endeavor, my advice is to stay calm, communicate and remember who and what it’s all about. A successful merger, done with respect and empathy, is a chance to reinvent everything you do in a positive way: new technology, better processes and the opportunity to present yourself and your teams with brand-new possibilities.
