Surviving a merger or acquisition

If you have ever worked for a large corporation, chances are that you have been, or will one day be a part of a merger or acquisition.  The AIDC industry is no different to any other market and we have over very recent years seen the market shrink due to a number of large and small scale mergers and acquisitions.  With the volatile nature of the public stock market, we must prepare ourselves for the fact that companies will continue to buy each other and recognize that these multi-billion dollar transactions can have far-reaching consequences if you are an employee at either the company being purchased or the one doing the purchasing.

To put it bluntly at the time that an acquisition is announced, the two companies will have a large number of people who will be doing the same job, and it is likely that half of those jobs will be redundant after the merger. Recognising that redundancies are an inevitable part of a merger and acquisition means you should take steps to position yourself well in the months leading up to and throughout the process.

Don’t rely on everything you have done before….

The fact that you are good at your current job isn’t enough to guarantee your position is safe. Just because your employer has trained you specifically for a job (like using a special database) doesn’t mean that these special skills will be relevant in the future. You need to realise quickly that times are changing and you must be quick to adapt, and look ahead rather than to the past.  After the merger dust settles, teams will be combined, managers will take on new roles and job functions can shift dramatically and the database you have been trained on may not be relevant anymore.

In large companies employees are often boxed into vary narrow roles making them an expert in one thing, but with limited opportunities to see the bigger picture and understand how the work they are doing is affecting the company’s bottom line.  If this sounds familiar to you, you need to make an effort to diversify yourself and learn some new skills as soon as possible.  Don’t be afraid to ask management the big-picture questions about why things are done the way they are, and how they will be changing in the future integrated company.  Identify yourself as someone who can help make that vision a reality.

Integration, Integration, Integration….

As the merger date gets closer and closer, there is a good chance that old projects will start to get cancelled and resources will start to free up.  After-all, it doesn’t make sense for the business to continue to invest in the company’s past organization and infrastructure, when many of these things may not be a part of the future.

However, there is some positive as in the midst of all of the cancellations, a whole new spectrum of projects will open up under the umbrella of “integration.”  Now is not the time to shy away from change, you need to meet it head on and positively (even if you don’t feel it).  Try to get involved as much as possible in these integration projects, as they will be paving the way for the future.  Ask to get invited to meetings, and try to reach out to employees in the other company to discuss the differences in procedures and processes, to make sure you will have a voice in the future direction.  The more you know about the strengths and weaknesses of both methods of operation, the more valuable you will be.  Tell your managers that you want to be a part of the integration effort and that you are willing and eager to branch into new roles and responsibilities, in order to get included.

When two large companies come together, one of the first things that’s done is a large assessment of the employees on both sides of the merger.  The best way to position yourself for these meetings, is to have as many managers as possible know who you are, and be willing to speak up on your behalf.  The old adage says that it isn’t what you know, it is who you know, and it is critical to have your name out there as somebody who can make things happen.  You cannot simply bank on your own manager (and even his manager) to have your back, because you don’t know if their role will be changing in the new company.

As I mentioned earlier connecting with folks doing similar jobs in the other company, is critical here as well.  If you have people on both sides who bring up your name as a key contributor, you should absolutely find yourself on the right list coming out of those assessment meetings.

Reality Check – Every Merger is Different….

When all is said and done every merger is going to be different and whilst the tips to help you position yourself are useful you should also recognise that despite your best efforts sometimes your skills or the job you have been doing will just not required in the new company.  Many a skilled and hardworking employee has fallen foul of the merger/acquisition journey and you should also prepare your self for this possible outcome.  News of a merger or acquisition by your company should at the very least be a wake-up call to get your resume up to speed, and to reach out to friends and former colleagues in the industry.  The local market may soon be saturated with people who are in the same boat as you, and if you start to see warning signs that you may not be a part of your company’s future plans, is would be wise to start looking around to see what else is out there.

QUICK FIRE  – THINGS TO THINK ABOUT:

Short-term Strategies

• Realise that no job is guaranteed today and nobody is indispensable.
• Be aware you will face a difficult culture – will you fit or not.  Be objective
• Management will tell you change will be gradual, or not at all.  Don’t believe it.  But, you do probably have a few weeks or months while merger details are arranged and actioned.
• Save the company £/$; be too valuable to let go.
• Be there –don’t be a clock watcher or sick out.
• Research the merger and buyer – talk with the buyers’ employees about turnover, promotion methods etc.  Read the annual report and business articles about the buyer and understand why the merger has happened.
• Be congenial; unliked people are the first to be laid off.
• Determine what other jobs could use your skills in the company; what changes will need you.
• Get feedback (avoid surprises): frank appraisals from the boss
• If the prognosis is bad, make your move and start looking – but try to time the actual move so you’ll get the severance, and then immediately go to the new job.
• Network (attend association meetings, trade shows, company committees).
• Keep the family informed and involved.
• Re-work your CV to fit the “new” needs of the merged company, or the company you’re approaching.

Long-term Strategies….

• Plan to get out if: you aren’t doing what you like doing, the company/industry is not expanding, the company/industry is financially unhealthy, morale is low, promotion trends are sideways or down instead of up, outside hiring and outsourcing is increasing.
• Develop the new skills you need for the job you want.
• Try to put away cash reserves of your annual income.
• Don’t panic even if job loss is expected, keep a steady hand.

If you are over 50….

• Keep up your energy.
• Stay focused – don’t get lax with administration, procedures and duties.
• Look for new duties and roles; expand your contacts, activities, value.
• Stay politically aware and active inside the firm.  WHOM you know can be as important as WHAT you know and alliances help a lot.

If you decide to Leave….

• Ask for outplacement as part of an offer to leave.
• Assess yourself (your interest, strengths/skills, needs, stresses) and be realistic.
• Set short and long-term goals.
• Create and interview generating resume – with keywords and quantified achievements.
• Research opportunities on internet, databases and talking to others
• Network, network, network, network, network, network – take a schmooze or lose approach!!
• Build relationships with industry relevant recruiters and headhunters.
• Be a pro-active interviewee.
• Know how to negotiate a compensation package.  If you don’t know get some advise before you say anything.