Staff Issues Before and After
Keeping your employees in the loop
After an acquisition or merger staff cuts or changes often take place to increase efficiency. Efficiency is a very attractive feature of an acquisition or merger, but cuts and changes may have to be made in order to achieve it. This causes potential problems and conflict, so if the staff in your business and the target business are involved in the process and are protected from uncertainty the process of the acquisition or merger will be smoother and generally easier to accomplish. To achieve this you should consider how you can make sure staff are in the know but at the same time do not tell them too much. It is good to keep them informed to ease their uncertainty. It is also better to keep hold of your important and key staff which is normally done through offering incentives and bonuses for their work. It is also best to keep your key staff involved in the due diligence process. It will also be good to get to know the important staff in the business and get to understand their skill set and what they are capable of. In the process of making the deal it would also be good to give the senior staff more responsibilities.
Information and consultation of employees regulations
Although it is up to whoever is acquiring or merging with another company to give as much information to the employees as they like, there are regulations that you must abide by, which are called The Information and Consultation of Employees Regulations. These regulations require you to inform certain employees about certain aspects of the deal. The regulations also mean that if you have more than fifty employees and more than 10% of them request a system, you have to agree a procedure for informing and consulting them. If you do not conform to the regulations and do not inform the employees even though there was an existing procedure, the employees have the right to go to the Central Arbitration Committee and state their grievance. If you are in the wrong you can receive a fine of up to £75,000.
Other staff problems
Other staff issues that are important to think about include how you can fill skill gaps, for example, and who, whether it be from your company or the other company, will fill them. You should also consider paying the differentials between the two companies and how to build the relationships and share knowledge between the two businesses. Other issues include; relocation, trade union matters and policies and procedures for the newly formed business.
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