By combining your computer systems and merging some departments, your new giant company will be better than ever. Sounds great, right? Sadly, it’s not that simple. There is an overwhelming amount of thought, planning, and negotiation that goes into merging two (or more) companies, and to ensure that your merger goes off without a hitch, you should aim to establish a committee to oversee the process. Here are three things to keep in mind when selecting the members of your committee
1. Find the Right Committee Members
The first step that should be taken is to establish your committee that will be responsible for the negotiations of the merger. It’s important to choose members that are independent of the corporate entities involved, and who are seasoned and experienced negotiators.
2. Identify and Avoid Conflicts of Interests
You should be aware or aim to identify any potential conflict of interest when negotiating your merger, and ensure that those involved in the process are completely independent. The ultimate goal is to ensure that the transaction is protected from bias, and that the merger and those involved are working in the best interest of the entity (or shareholders) rather than themselves.
3. Keep your Committee Focused and Vigilant
It’s imperative that your committee stay vigilant and focused during the negotiation process. In some cases, the transaction isn’t done until well after the deal has already closed. The process of a merger can be long and exhausting, but it’s imperative that your committee stay focused until the process is fully complete.