Close
 

Mergers: Making it work

  • News
  • August 17, 2019
  • Jai Breitnauer
Mergers: Making it work

We took an in-depth look at recent retail mergers. Jai Breitnauer compiled all the advice from the feature into this handy guide on how to get one right.

The data shows that more corporate marriages fail than go the distance, so it’s important to get it right.

Culture:Colleen Ryan from insights agency TRA believes that one of the main reasons just one in four mergers work is because buyers spend too long looking at the balance sheet instead of thinking about the company culture. 

“Most reports show between 60 and 80 percent of mergers fail,” Ryan told me in an email. “Failing is defined in regard to delivering value to shareholders… more than a quarter of mergers actually erode the shareholder value of both companies.”

Culture, she says, is the culprit. “Or more specifically, two cultures, and the failure to leverage the value of two businesses because of cultural differences.”

Going in all guns blazing and imposing your existing company culture on an established brand could be a recipe for disaster. Equally, trying to preserve two separate cultures can lead to confusion and misunderstanding. Looking at company culture using discourse analysis (looking at the language used in a company by analysing emails, notices, contracts etc.) can be a useful way to see what underpins the culture of both companies, and then you can make clear decisions about how to lock the two together.

Relationships: It is important to do your due diligence when looking at buying a business. The tangibles of the balance sheet are important. 

“A good deal means no surprises,” Neil Miller, from Minster Ellison Rudd Watts told the NZ Herald. “It means that the seller engages specialists well ahead of its exit so that the business is prepped for sale when the time comes. The buyer does its homework and builds a strong relationship with the seller.”

Miller reminds potential buyers that due diligence can be time consuming and frustrating for the seller. Your role is to manage expectations and make sure key parties are working together effectively. Get to know the sellers and build a good working relationship – their knowledge and support will be key to an effective marriage. 

Vision: “The most successful merger or acquisition has full buy-in from all parties. This includes not only the owners and stockholders, but the employees and customers,” says entrepreneur Bill Rader, writing for Forbes. “All parties need to understand the vision of the merged companies and see the upside. They have to understand why a merger is necessary or desirable and in their best interest.”

Good communication strategies here are key, as is good leadership from senior management. 

“I have seen cases where the employees are not in line with the company mission years later, and this is a very bad thing,” says Rader. “In a merger, the employees are key to the success, more so than the owners or senior management. However, it takes the senior management’s leadership to successfully implement the merger.”

This story originally appeared in NZ Retail issue 762 June/July 2019.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

2020 vision: What 2020 means for Dargaville retailers

  • News
  • January 22, 2020
  • Rachel Helyer Donaldson
2020 vision: What 2020 means for Dargaville retailers

In the final installation of our series looking at retail in seven New Zealand regions, we're examining Dargaville.

Read more
 
 

Container Door fined $54,000 over non-compliant bicycles

  • News
  • January 21, 2020
  • The Register team
Container Door fined $54,000 over non-compliant bicycles

Ecommerce retailer Container Door has fallen afoul of the Commerce Commission after supplying pedal bicycles which did not meet mandatory product safety standards.

Read more
 
 

2020 vision: How Cambridge retail will perform this year

  • News
  • January 21, 2020
  • Rachel Helyer Donaldson
2020 vision: How Cambridge retail will perform this year

As part of a series looking at seven regional centres to consider what regional retail looks like this year, we're considering Cambridge.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
2020 vision
What does the next decade have in store ...
Concept to closet
Business coverage of New Zealand Fashion Week.
Regional rollercoaster
What does retail look like in 2019 for ...
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
The future is bright
We spoke with four retailers in their twenties ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
All things to all people
Kiwi retailers share their omnichannel strategies.
How to open a store
Sarah Dunn considers what it would take to ...
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Steve Mills becomes Countdown's new GM of Merchandise

  • Who's Where
  • January 21, 2020
  • Makayla Wallace-Tidd
Steve Mills becomes Countdown's new GM of Merchandise

Countdown has announced Steve Mills as the new general manager of merchandise.

Read more
 
 

Larger retailers to discuss key issues in Retail NZ’s new group

  • News
  • January 20, 2020
  • The Register team
Larger retailers to discuss key issues in Retail NZ’s new group

Retail NZ is launching a new Leading Retailers’ Group for large and significant retailers. With its first meeting to be held in late February, the group will provide a safe outlet for senior retailers to discuss issues affecting the sector.

Read more
 

Read it again: Best of The Register’s retail fit-out stories

  • News
  • January 20, 2020
  • The Register team
Read it again: Best of The Register’s retail fit-out stories

While you’re working through the summer break, we’re providing some reading material from our archives to keep you busy. This time, we’re looking at top fit-outs and premises.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}