Industry giants such as Taylor Wimpey have reaped the rewards of amalgamation, however, Daimler Benz incurred a $30 billion loss when they bough Chrysler, and let’s not forget AOL Time Warner’s $186 tie-up disaster.
There are a number of key things to take into consideration when considering whether to merge construction companies, including:
Delete the duplicates
A company doesn’t need to have two financial directors and two heads of accounts in the newly merged finance function. Reducing the number of roles at a firm will be more cost effective.
Adopt a one system for all policy
Work with your IT team to implement a single construction finance software system across the two companies. This will ensure that both companies are performing on a par with each other and have access to all the information required to successfully carry out projects.
Communication is key
Before the acquisition gets underway, a company must establish who is in charge and what everyone’s roles are. Chains of command often get broken during a merger, but staff must know who they answer to at all times to ensure that workflow is not disrupted.
Don’t let problems escalate
Following a timetable from the beginning will prevent any serious disruptions or delays from occurring and damaging the new firm’s reputation. Problems should be identified as soon as possible and dealt with efficiently.
Effective construction finance software identifies areas that need improving on and help save money. Lack of resources is a common complaint amongst senior managers, so make sure you have the right resources from the offset.
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