Quick Takeaways

  • Mergers and acquisitions are a part of the real estate world, and successfully managing a merger requires deliberate leadership and due diligence.
  • If possible, managers should help in the integration and provide employees with as much details as possible.
  • Office culture plays a huge part in a successful merger. Avoid participating in the spreading of rumors and lead by example.

Source: Surviving and as a Manager During a Merger

While mergers and acquisitions both combine two businesses into one, the circumstances are often very different. Mergers are mutually agreed upon, while acquisitions are not always wanted, and sometimes even hostile. Company culture can play a huge role in the success or failure of a merger and acquisition.

The COVID-19 pandemic certainly affected mergers and acquisitions in the commercial arena. As the office industry was completely upended by working from home, coworking companies like WeWork joined ranks with more traditional companies like Cushman & Wakefield.

As companies join, both must do their due diligence in order to insure that everything is in place legally, and financially, but also culturally and physically (if in the office). According to the Harvard Business Review, 70-90% of mergers and acquisitions fail, and a lack of due diligence in examining office culture is perhaps an overlooked explanation.

There are many options when starting a new or merged business – you can form an LLC, an S Corp, or a variety of other business structures depending on your business needs and circumstances. The United States Government has many free and informative online resources for all business incorporation.

See References for more information.

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