The merging of two existing businesses can create an opportunity for great corporate profit, if the process is handled appropriately. Trucking mergers generally succeed and fail in one area – human resources.
The process of melding two businesses is much more than the amalgamation of two corporate entities – it is a human fusion. Studies show that on average, 47% of senior management leave a newly merged company within the first year, and merged companies experience an average of a 50% decline in productivity within the first 6 to 8 months following the merger. Loss of senior personnel means loss of knowledge, expertise, valuable historical data, and likely anchors to accounts. A survey of key employees that chose to leave after a merger showed one of the key reasons for their departure was a lack of communication throughout the merger process, and a resulting climate of fear and misunderstanding.
Companies that take an attitude of transparency throughout the merger and acquisitions process are better prepared to retain valuable talent throughout the course of the unification. By eliminating uncertainty and addressing questions about downsizing, layoffs and major shifts head on, investors are able to put employees at ease.
Successful trucking mergers occur when new owners take the time to address human resource issues such as corporate culture, communication, vision, goal setting, recognition and more. In order for employees to buy in to a changed corporate vision, managers must communicate future plans, encourage employee commitment to that vision and take measures to make the transition process as simple as possible. Investors that successfully establish an employee buy in from the merged company are careful to be aware of fragile egos at play, and handle new employees with sensitivity, taking into consideration their potentially bruised egos.
Simplifying the merger process can also help to ensure a reduction in employee turnover. In order to simplify the process, investors should ensure that IT transitions are handled by capable professionals that can address employee concerns throughout any system transfer. Another way to simply a transfer of power is to hold off on any employee demotions, promotions or layoffs until they are absolutely necessary. By doing so, employees are able to gain a sense of stability, even after a transfer of power.
The Tenney Group works with investors to help them through the process of buying a trucking business successfully from the start. Speak with a Tenney Group representative today to learn more about successful, stable and established companies available for purchase.