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2 tips for telling your employees about a merger or an acquisition

On Behalf of | May 6, 2024 | BUSINESS & COMMERCIAL LAW - Business & Commercial Law

If you are merging your company with another or another entity is taking ownership, you need to communicate this matter to your employees. They may find out about it one way or another. And this can lead to misinformation that can create uncertainties about their careers.

Below are two tips for telling your employees about a merger or an acquisition:

1. Provide adequate information

While you may not have offered your employees much information about your business decisions before, a merger or an acquisition should be handled differently. Your employees need to be adequately informed. Examples of questions to answer include:

  • Why are you merging or selling the company?
  • Why did you choose the company in question?
  • Will their roles change?
  • How will they collaborate with employees from the other company?
  • Will the evaluation of their job performance change?
  • How will the leadership be altered?
  • What are the new business’s goals?
  • What cultural changes will happen?

Consider having the initial conversation sooner to have enough time for subsequent discussions. Once the deal closes, send your employees an informative, clear email.

2. Talk about the positives

Your employees’ anxiety can go through the roof after informing them about a merger or an acquisition. That’s why it’s vital to keep them adequately informed. Additionally, magnify the positives.

Talk about the new resources or talent that the other company is bringing. Tell them how this opportunity can help grow their careers. Discuss how their shares can rise if they own shares in the company, and so on.

Doing this can ease their anxiety, allowing them to embrace the merger or acquisition.

A merger or an acquisition can negatively impact employees’ motivation and productivity if not handled appropriately. The above-discussed tips can help you avoid such an outcome.

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