Industry Focus: Mergers and Acquisitions
It seems as though every year between May and September, we hear the same type of story over and over again: This company was bought by that company, Company A received funding from Venture Capitalist B, and on and on. It may be something that we’re used to, but that doesn’t mean it doesn’t have huge impacts on the industry. No matter what anyone says, there’s going to be change, and lots of it. We know what change is like.
It seems as though every year between May and September, we hear the same type of story over and over again: This company was bought by that company, Company A received funding from Venture Capitalist B, and on and on. It may be something that we’re used to, but that doesn’t mean it doesn’t have huge impacts on the industry. No matter what anyone says, there’s going to be change, and lots of it. We know what change is like. Because we’ve all chosen to work in the technology space, we know that we have to adapt and change as technology changes, but when that change comes with more questions than answers, you find yourself in a tough spot.
So what can you expect when your strategic partner goes through M&A activity?
- Cultural Change – The cultural change is probably the biggest change you’ll see out of a company that’s been acquired. You might ask yourself, how important is company culture to customers, employees and the outside world? Well, it’s very important. Culture plays an important role in product decisions as well as strategic decisions, and not to mention, culture attracts talent.
- Strategic Change – While cultural change might be the biggest change you notice right away, it’s the strategic change that could have the biggest impact on your business. Companies get acquired for two reasons, either because they’re profitable, or they’re not. In most cases, they’re not, so what does that mean? It usually means they’re going to have to make spending cuts somewhere. It’s very important to understand where those cuts will happen and the impact they will have on your business.
Change creates uncertainty. Is the old management team going to lose control of decision-making, is the company going to lose focus on its customers, will it lose key employees? These are the types of questions that need to be addressed, because the answers could have a significant impact on your business.
If you’re facing some changes, or have questions about the direction of your strategic partners, feel free to reach out to us and we’ll show you how ConnectWise can put all your concerns to rest. Get in touch with us today.
Adam Slutskin is senior vice president of Worldwide Sales for ConnectWise. Made for companies that sell, service and support technology, ConnectWise is the No. 1 business management platform worldwide. Monthly guest blogs such as this one are part of The VAR Guy's annual platinum sponsorship.
