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As we begin to see the light at the end of the pandemic, the economic landscape looks vastly different for small businesses than it did prior to COVID-19. If you are looking toward the future for opportunities to grow, you may be considering an acquisition or merger. It is one less competitor and quick growth, after all. But financial benefits should only be the start of your evaluation process. Here are some other things, bigger things you need to consider when considering a merger or acquisition.

Does it fit your strategic plan?

One of the biggest mistakes you can make as a business owner make is focusing on increasing revenue rather than the big picture. What you should be considering is how this potential change aligns with your business’s strategic plan. Does it help you further your business’s future overall long-term goals? Does it strengthen alignment among your existing activities? If not, you either need to create a new strategic narrative that incorporates the change or forgo the opportunity to look for a different one.

Can you take advantage of the opportunity fully?

You may be ready to grow your business, but is your business prepared to grow? Consider whether your business’s operational resources can take on the growth this change would bring and sustain it long-term. You want to make the most of every opportunity. If your organization isn’t equipped to handle the increase in operations, you may need to explore other options.

Do the companies fit culturally?

This is the most critical factor when considering a potential change. Do the company’s cultures align with each other? You want to merge or acquire a company with values that align with your company’s mission and values. When we talk about hiring, we often talk about the right people in the right seats. In hiring, it means the right fit will ensure a person excels, and when people excel, the company excels. The same is true for companies. When two companies fit, the merger or acquisition is naturally successful. For example, imagine a traditional suit and tie, 9 to 5 operation with productivity values merging with a company that values flexibility and creativity. Because their values don’t align, the teams won’t work well together.

What does your gut say?

At the end of the day, you can have a merger or acquisition that looks flawless on paper, two companies that fit together like puzzle pieces. But if you feel that something is off, trust your gut. Business owners have a sixth sense when it comes to bad decisions regarding the future of their business, and many don’t listen to it. Do your research, evaluate your options and make the best decision for the future of your business.

Need help with determining the next best steps for your growing business? Our team of business advisors is ready to help. Contact us.