Your business has been very successful, and your marketplace is clamoring for more. You would like to bring more products to market, or perhaps you would like to increase production of what you currently offer. It looks like a good time to grow your business, but you see an opportunity for growth that must happen more quickly than you've been able to manage organically. It is time to consider a merger. Bringing in another company to either supplement or complement your own can be a way to fast-forward your company into the future. Choosing the right partner can be tricky, however. There are many factors to consider in order to find just the right fit.

Factors to Consider

1. Will They Contribute To Our Business Strategy?

Any company you consider should contribute to your business strategy. Do they increase market share, or bring a new source of clients? Do they introduce your company to a new location or geography?

2. Do They Have The Right Products and Compatible Technology?

Do their products and services complement your company's offerings? Do they have the right technology, from lead management software to accounting packages, it would be best if their tech is up-to-date and that it can merge with yours.

3. Are They In a High-Growth Market and Positioned To Succeed?

Before you consider a merger, be sure you understand their market. Are they in a market that will grow in the near future, or are they in a market that will wane? Is their company positioned for long-term growth, sporting innovative products and the infrastructure necessary to bring those products to market? Choosing a company that looks great on paper but is not positioned well for the future is not a good candidate for merging.

4. Do Our Two Companies Share a Business Culture?

For your two companies to merge effectively you need to share at least some common ground. Do you share a business sector or marketplace? Maybe more importantly, do your two companies share a culture? If your company is all about a fun environment and offline team-building and their company is all about strict rules and regulations, joining the two may be more complicated than would be effective.

5. Is the timing good?

It is important to consider the timing. Are both your companies in a place where they have the capacity to complete a merger? The best time for merging is when all other things are going well, and the management teams can focus on building your new venture quickly and efficiently.

Once you have identified a potential partner what is the next step? Take the time to fully examine their finances. While you are doing your homework, look for evidence that your future partner has:

Profitability

Evidence of steady growth

Product diversification and a history of innovation

A strong management team that meshes with yours

A business strategy that contributes to your own

We Merged - Now What?

Once you have found a potential candidate and you have agreed to a merger, how do you translate your excitement about working together? Be sure to carefully craft your first day to set your venture off on the right foot and ensure your future success.

Your "Day 1" Announcement

The first day of your combined companies is an exciting day. The most important thing for day one is to control your message, both internal and external. Internally, your employees will be nervous about their roles in the new venture. You will want to reassure them that their role in the new venture is secure and important, and to build some excitement about what will come next. Externally you will want to let your customers know what is happening. If you do not have a strong communication team, consider reaching out for outside help to craft a press release letting the public know what is happening and what they can expect from you in the future.

Growing your business, especially by merging with a like-minded company, is an exciting opportunity for you and your employees. By taking the time to be careful about your decisions and your communications you will be sure to find success.