Best Practices From Recent Mergers – Part 2

The merger activity taking place is hot and heavy.  Here are best practices observed from recent mergers we were involved in (see our May 25 blog post for Part 1):

 For upward, sideways and downward mergers:

 1. Use the same high standards you use to make someone a partner at your own firm, for accepting partners from a merger candidate.

2. Avoid negotiations where the other firm’s negotiator always needs to go back to the partners before making decisions. 

3. If a big reason for the merger is synergies, a strong leader of the combined firm is needed who has the skills and persistence to exploit the synergies.

4. Be crystal clear about what each firm expects to happen after the merger is completed.

5. Failure to do QC due diligence.  Don’t assume the other firm’s work standards are acceptable.

6. Need to be patient with transition; it always takes longer, 3-5 years on average.

 7. The first meeting with a merger candidate is the most important.