Business mergers are a common occurrence no matter the industry. Whether you’re a business owner merging with another company or an employee wanting to ensure you aren’t lost in the shuffle, you need to be proactive about protecting yourself during a business merger. Whether you’re a business owner or employee, here are several ways to take a proactive approach to protecting yourself during a business merger.
Use a Transfer Agent
As a business owner, one of the most effective ways to protect yourself during a business merger is to use a transfer agent. A transfer agent will help you prepare and maintain financial records that are vital during the merger process. Transfer agents can help protect you by managing shareholder records and ensuring shareholders are informed throughout the merger process. For business owners, using a transfer agent is important because shareholders must be informed of relevant information in a timely manner, and this allows you to focus on other aspects of the merger process instead of having to worry about keeping shareholders informed and information organized.
Keep an Open Mind
Business mergers can be a scary time for any employee or owner, but it’s important to keep an open mind throughout the process. Even though most people associate mergers with layoffs and cost-cutting measures, mergers can be a good thing. A business merger could bring new cash flow into a business and offer more modern resources. Since no one knows what the future holds, merger or not, it’s best to keep an open mind and not speculate about anything. Merging with another company could be what saves your company and keeps it running for years to come.
Keep a Paper Trail
You should keep a paper trail of all communications during the merger process. Even if something is mentioned in passing, send an email to follow up on the exchange so there is actual documentation of the conversation. You should keep a folder for both digital and physical communication regarding the merger so you can easily find anything you need to reference. Having a paper trail protects you because you have documentation that you can reference back to if anything changes.
Avoid the Rumor Train
No matter the size of either company, mergers bring plenty of rumors, speculation, and gossip. Take yourself out of any conversation that delves into the “what-ifs” of the merger that isn’t an official meeting. Avoid being involved with office politics and making alliances with any other employees. Speculating on the “what-ifs” will just waste time, add to everyone’s stress levels, and not accomplish anything. Simply focus on doing your job throughout the merger process and showing why you are a valued employee. Business owners need to avoid talking about a potential or current merger outside of official meetings, even with trusted employees.
Mergers can be a stressful time for both business owners and employees, but it’s important to remember that mergers can be a good thing and bring new life into a business. No matter what role you play in a company, you should use the above information to protect yourself during a business merger.
