Whether for economic or strategic reasons, there are several reasons why two companies can merge. It can be as simple as wanting to ensure their longevity. Indeed, the life of a company has dropped considerably recently. According to a Boston Consulting Group study, “one in ten companies die every year, compared to one in 40 in 1965.“ Merge with a competitor and thereby expand the range of services offered and the number of customers, can therefore help to avoid this kind of design.
And us in all this?
Perhaps you had already noticed but Groupe SAGE Consulting has just been created recently, following the merger of FG8 and SAGE Consulting. In our case, the merger of our two consulting firms had the main goal of bringing together our best talents and strengths to better meet the needs of our clients. In working together, we wanted to position ourselves in the marketplace so that we could truly accomplish our common mission of helping organizations elevate their leadership and facilitate their transformation. In other words, our goal was to make the famous synergy formula effective: 1 + 1 = 3!
Not that easy …
However, the challenges of a merger should not be underestimated. First of all, it is a process that takes time. Think about all the changes, no matter how minor, organizations must make: new email addresses, new business cards, new offices, etc. And not to mention the tons of paperwork! Do not expect to get all the benefits in less than two, far from it! A McKinsey research asserts that only 10% of companies achieve the goals they set for themselves in the expected time.
The more than likely difference between the organizational cultures of the two companies is undoubtedly the biggest challenge. If this difference is not taken into account in a merger process, it is likely to fail. Indeed, organizational culture has an impact on all aspects of a business. It is therefore more than important to analyze it well, anticipate employee reactions and understand the behaviors that will enable companies to work together well. It is also strongly recommended to communicate continuously with employees and to gradually introduce a new culture that is accepted and appreciated by all.
Still immersed in this process and far from being a professional merged, the SAGE Consulting Group still strives to follow its own advice and form a team of thunder in order to offer you the best possible services.