Partner Article

Embrace the challenge of business mergers ‘for your own good’

The increasing frequency of mergers and acquisitions presents opportunities for leadership teams and their employees, say executive recruiters Walmsley Wilkinson.

Many individuals have reservations or experience anxiety about the concept of change, says Director Taryn Wilkinson.

She said: “It’s all about the unknown and the concerns about what a future structure or culture might represent when the business they currently work for is being sold or merged with another organisation.

“Some take the decision to leave their employers once the M&A or integration announcement has been made. This may turn out to be the right decision for that individual, but it could also be a missed opportunity. We advise people to see it through wherever possible in order to add the experience of that business change to their portfolio of work.

“Many sectors are changing because they have found different, more efficient business models or need to diversify their product or service, but this doesn’t have to be a negative experience for individual members of the leadership team and the wider business.

“Taking part and developing the skills necessary for such a transformational change in a business can only add to the credentials of a senior executive. The re-structuring decisions may be difficult, but they add another dimension to what they have to offer.

“Change is the only constant in most business environments these days and building your experience of that can only widen your appeal to future employers. If you later decided that the new world of your organisation doesn’t meet with your expectations or needs, you can then explore the market for your next opportunity.”

In the wake of the pandemic, many companies are adapting to new business models as companies seek investment, acquisitions or buyers to help them strengthen their offerings, customer base, services or products, address niche markets, improve revenue and profitability and meet new customer needs.

According to latest data from the Office of National Statistics (ONS), the value of domestic M&A activity involving UK companies during the quarter April-June was £10.6 billion, an increase of £6.1 billion on the value recorded in the previous quarter of £4.5 billion.

The total value of inward M&A activity with foreign companies acquiring UK companies was £27.7 billion, £19.4 billion higher than the previous quarter of £8.3 billion.

This was posted in Bdaily's Members' News section by Paul Tustin .