Mergers and Acquisitions – What It Means To The Industry

| By: Steve Farnan

You know how you can tell it’s the summer time?  Sure the heat (it was 96 degrees in Tampa yesterday), but when you start to hear rumors and see news articles about this company or that company merging or being acquired.  We saw the same thing last year, with a number of companies in our space being acquired by various different groups.  So what does it all mean?

Well for starters, its means there’s going to be some change, which really shouldn’t surprise anyone considering we’ve all chosen to work in the technology space.  We usually have to reinvent our service offerings every 3-4 years.  So we’re used to change, but when that change comes with more questions than answers, you find yourself in a tough spot.  Here are two you can usually expect from a company that goes through M&A activity.

Cultural Change

There’s no way around it.  The company that was acquired today is not the same company you knew yesterday.  There’s a different group of people calling the shots now.  Sometimes a cultural change can be a positive thing, but more often than not it’s a bit of a shock in the beginning.  In our industry, where company culture and the sense of community is so important, this is one to watch out for.

Strategic Change

This is another one that’s a pretty sure bet.  Companies may  go through M&A for a variety of reasons…maybe they were underperforming and someone saw a deal they couldn’t pass up, or they’re doing great and someone sees their true potential.  When a company is acquired,  there’s usually some sort of change in strategic direction.  Even if a company is operating a peak efficiency, new ownership will always have a few “small ideas” to help.  This type of change can have a direct result on your business, so it must be paid careful attention.

Like I said before, change in our industry is inevitable.  The key to handling change is understanding the impact it will have on your business and acting accordingly.  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.