Insider tips: surviving mergers and acquisitions

Experts from Innovative People Solutions, an assessment and counselling consultancy, offer some ideas about how to best cope with corporate mergers and acquisitions.

Mergers and acquisitions (M&As) are not a new phenomena in the business world. However, the last six months have seen an unprecedented level of major M&As. Of, course M&As are a lot more than something that just happens to balance sheets. M&As require major changes in both organisations as two distinct businesses are brought together. Preparing for and surviving this change is no small task — either as a manager or as an employee.

Warning signs

You are unlikely to find out about an impending merger or acquisition much before you start reading about it in newspapers. When you do get wind of an M&A being a possibility, you have every right to ask your managers where that places you — even if you are in the company that is doing the taking-over. Start doing some basic research into the company that yours is merging with or taking over. Learn what you can about their structure and corporate style. The Internet is your best tool — look up the company's home page and investment advisers' web sites for corporate profiles if the company is publicly listed. Business newspapers and magazines are also a good source of information.

Knowing about the other organisation is the key to ensuring your career will survive an M&A. If you are in a key area that the acquiring company is actively seeking as part of the merger, you can probably breathe a little easier. On the other hand, if you are in area of clear duplication, you should be preparing yourself to look for alternatives. Do not panic though! Knee-jerk reactions can be costly, so plan your way through the process.

Will I stay or will I go?

Unfortunately, whether or not you have a good track record has played all too little part in deciding who goes or who stays after the merger. Thankfully, this is beginning to change as corporates realise that many of their best people are lost in the merger process. The most important point to remember is that nothing is certain in a merger or acquisition, and the process you go through should be the same — regardless of whether you think you are going or staying.

You should also consider whether it is in your best interest to stay at the merged organisation. When two companies are brought together, there is generally a substantial change in "the way things are done". This change may not be to your liking. Career potential that may once have been there for you may disappear. Conversely, the merger may open a world of new opportunities for you. Research, which may be as simple as keeping your eyes and ears open, is the best way to find out.

Do not be tempted purely by the opportunity to take a redundancy package. While the lure of quick and easy money may be very tempting, you must consider your career options. A large one-off cash payment may not compensate you for a long time in the job market without significant income.

Either way, you should prepare yourself for looking for a job — be it inside or outside the merged organisation.

Steps to survival

Update your resume
Your most valuable document! Make sure it is up to date and polished. You may be asked to re-apply for your job or for a new job in the merged organisation. So be ready with a resume that will help, not hinder this process. Remember that a resume is usually used to rule you out of a job, not to get you a job — write it accordingly.

Polish up your interview skills
If you are re-applying or applying for a job, make sure that you are ready to present at an interview. Often people fail to "win" their own job because they assume that they are such a shoo-in for the role that they need not prepare. Advice on how to prepare for interviews can be found elsewhere on SEEK, but remember that if you are re-applying for your old job, you are not going to necessarily get it — treat the interview accordingly.

Look for growth opportunities
M&As create a new organisation that is inherently unstable. New structures, new people and new work systems all create opportunities for those who are switched on enough to exploit them. Often positions will become available internally that take you into a new area or allow you to advance your skills. Use your internal knowledge to position yourself to take advantage of these opportunities.

Look outside, no matter what
Take the M&A as an opportunity to consider your options. Is your current career path right for you? Where do you want to be a few years from now? Most importantly, will what you are doing now get you there? Many people pass up opportunities for career advancement by taking a blinkered approach to external opportunities. Change is always daunting, but if your current role is about to change around you, then make sure it is a change for the best. Consider all your options.

The merging of cultures

The issue of corporate culture is one of the most under-rated facets of M&As. Every organisation has its own unique style and way of doing things. For many employees, this is one of the main reasons that they joined or stayed with their employer. When you bring two organisations together, their cultures necessarily change.

Shareholders have begun to realise that simply putting two companies together does not necessarily work. Companies now have to more carefully review the cultural aspects of how they go through a merger or acquisition process. This is something that employees should be aware of as well. As culture is a "personal" thing, you are the only one who can decide if the new environment is one that you wish to work in. If it's not, do not be afraid to decide to move on to greener pastures. If you stay with an organisation that does not suit you, you will not perform as well as you otherwise would and, in the end, you will end up leaving anyway.

As part of how organisations deal with the culture issue, you may find yourself being sent to an assessment centre to go through a series of tests to identify what work style suits you. Make the most of these environments and answer the tests honestly. It is in your interest to make sure that you will fit in to the "new style" organisation.

by Mark Gallagher, consultant psychologist.