Acquisition Transition

mburch · June 2002

Our firm of 200 is on the verge of acquiring a 65 person firm in a few days. The staff at the new firm will not know about the acquisition until several days after the fact. I, being the HR Director, will be with the President when he informs the new staff of the sale and that they know work for a new firm. This is my first acquisition where the new firm knew nothing of the deal. Has anyone been involved in a similar situation and can you give me some pointers to help in the transistion / morale process?

Thanks for your help.

cebudragonlady · June 2002

Way back when,I was with a company that was acquired . We did not know it until
a meeting was called, and representatives of the buying company walked in and told us. First mistake, the buyers said nobody's job was safe. Second mistake they made, the buyers said that we all had to start commuting to an office over 30 miles away - you could have heard a pin drop.Third mistake, we all had to fill out job application forms as brand new hires. Fourth mistake, all our accrued vaction with the old company was forfeited .We were stunned. After the meeting, morale was shot. People started looking for jobs. People quit.I ended up doing the long, long commute - but got out the very first chance I got. the buying company ended up in Chapter 11 bankruptcy.

Theresa Gegen TX · June 2002

I think the previous replyer has made some great points. The employees will be wondering "What does this mean to me" and will probably not be happy about not being told sooner. So, stress the benefits of working for the new company and stress the things that are not going to change (for example, pay, medical benefits, retirement, etc.).

Good Luck!

Janet · June 2002

I've been on both sides of the acquisition equation. Most certainly, keep things positive, but don't make shallow promises. First and foremost, employees are concerned about their jobs, and preserving as much status quo as possible. Keep the communication lines open, and deal with concerns directly. Good luck!

Carol CA · June 2002

Communicate, communicate, communicate. Be sure to make yourself available for questions. People are going to be very concerned about their future employment and what this change means to them. Have handouts ready if possible about benefits, pay periods, helpful telephone numbers for questions, etc. Of course the best situation is little change for the employees other than the name of the company. But if there are lots of changes it will go in one ear and out the other, which is why I suggest the handouts. You can never over-communicate in a situation like this.

Be sure to also explain WHY the merger ocurred, and hopefully the benefits that will result. It is hard for employees to accept if they don't know why the change took place.

KHelgeson · June 2002

I've seen acquisitions happen the "right way" and the "wrong way". My advice to you would be to have many of the questions answered before the meeting and, as stated earlier, have it on paper to hand out. Ensure that senior management agrees with the information before-hand.
Answer questions like:
What happens to my seniority?
Are benefits going to remain the same, if so, how long? if not, what are the benefits offered with the new ownership?
Have employee handbooks or policy manuals available?
Have company information available (contacts, history, mission statement, goals, values, etc.).
Be prepared to say "we must research the previous employers intent/policy before we can advise". Be cautious of using the phrase "I/We don't know", it will undermine their faith in you as their HR rep.
Get a feel from senior management where they may be willing to make some concessions or "grandfather".
If available, review their current handbook, policies, benefits so you can talk to any differences and highlight advantages.
Good luck

Acquisition Transition

Comments