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Why Mergers and Acquisitions Can Fail - Part 4,397,799 Clients who are expanding their business through a merger or acquisition are smart enough to know that keeping key employees is crucial in order to maintain key contracts. One of Darcie's clients closed on a deal yet failed to do research on the loyalty bonds that exist within the acquired firm. There frequently are leaders who garner loyal devotion from a network of employees. If the leaders of the acquired firm are unhappy or dissatisfied after the acquisition, the entire network is influenced and in jeopardy. That means defections. Defections of groups of key employees means contracts with customers might be in jeopardy. This intelligence should be and can be gathered and understood during due diligence just as intelligence is gathered on contracts, leases, and compensation agreements. |
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