Before making that decision on whether or not to merge your law firm with another, you have a lot of factors to consider. While making a merger happen is a valid option, making them work can sometimes be an entirely different story. Did you know that half of all mergers fail to meet expectations due to personnel issues? A merger is not a life raft and shouldn’t be a choice you make for the wrong reasons. The best mergers that work are based upon a great business strategy and companies like www.firmtransitions.com are there to assist in the transition while a merger happens.
Mergers can fail for a lot of reasons including poor financial performances and loss of clients. Issues with leadership and management can also make a merger fail. Philosophies, personalities and lifestyles should be compatible for companies that merge together; there is no point in merging with a law firm that has a totally different direction than yours. Both partners both sides should have several meet ups and business lunches before they even discuss the merger. You cannot possibly merge with a company that has totally different values to yours and building a good friendship and business relationship is clearly a good idea before signing any paperwork.
If you want to improve the firm’s competitive position then speaking to www.firmtransitions.com about transitioning into a merger is a smart idea. Obtaining additional expertise and expanding into other geographical regions are also valid options to merge your company with another. Location is something that is always a consideration for forming a company let alone merging another. When you chose where your company should go, we think location is something every business considers extremely carefully and that shouldn’t change just because you’ve had to merge elsewhere. Other reasons for wanting to merge with a similar company to yours include adding new practice areas and increasing – or sometimes decreasing – your client base.
Improving and solidifying client relationships is very important if you want to keep your clients happy once you’ve merged with another company. Companies such as www.firmtransitions.com help a merger with another firm and understand that it is not a decision that can or should be rushed. Finance and business/personal cultures should be looked at carefully and Firm Transitions know that assessing goals and needs of your company and that of the other firm is vital to making the transition smooth.
If you and your choice of firm decide to go ahead and merger then implementation begins. An agreement is drawn up and a plan is put into motion. Company IT infrastructure generally takes a lot of work and if you’re moving in with a larger firm than your own, all of this can take a lot of work. The IT changes ahead will need to accommodate a larger entity so make sure you budget plan for this as well as all the other budgetary concerns of the merger.