Mergers and acquisitions are a huge step for any business. Allowing companies to widen their scale and reach a broader market of consumers, integrating multiple businesses can stimulate monumental revenue growth. However, this process can be challenging to pull off without help from a PEO.
An experienced professional employer organization, or PEO, is a valuable tool for mergers and acquisitions. Providing valuable solutions to help navigate business integrations, a PEO can help you develop a successful HR strategy for your newly merged business. Read below for our guide on how a PEO can help with mergers and acquisitions.
What are Mergers and Acquisitions?
Mergers and acquisitions involve joining two companies together to form a single entity. Though the two terms are often used synonymously, they have different meanings. A merger combines two businesses, usually of the same size and stature, to form a new company under one corporate name. Meanwhile, an acquisition refers to the purchase of one company by another company, where the purchased company is integrated into its parent company. Typically, companies will instigate mergers and acquisitions to expand into new markets, eliminate competitors, and gain valuable intellectual property.
How Can a PEO Help with Mergers and Acquisitions?
Companies undergo huge adjustment periods during mergers and acquisitions. A PEO can help your business regain its footing after its merger or acquisition by integrating company cultures to re-structuring company policies. Read below for more ways a PEO can help companies with mergers and acquisitions.
Getting Things Organized
If a merger or acquisition is on the horizon for your business, it’s essential to get things organized before the process moves forward. As an employer, this is your opportunity to take an introspective look at your business’s HR services and fine-tune things. A PEO makes this step a whole lot easier with comprehensive HR solutions. From payroll management to employee benefits, a PEO will ensure your HR infrastructure is strong enough to support your business as it undergoes a merger or acquisition.
Dissecting Potential Acquisitions
If you’re searching for potential acquisitions, a PEO can help you narrow your scope. With industry expertise and first-hand experience with your business, a PEO can help you identify and vet potential acquisitions to make informed decisions for your business. When surveying potential acquisitions, a PEO can analyze certain HR variables to filter out companies with unorganized or unfit policies. From employee retirement plants to payroll administration, a PEO will do all the digging for you to ensure a company is a viable prospect.
Helping Integrate Companies
Once the merger or acquisition is underway, your business will undergo a huge transitional period. As two separate companies with their own identities, products, and brands join together, they will likely experience some growing pains. With a PEO, you can mitigate the stress of this integrational period and help your business acclimate to its new circumstances. Some ways a PEO can help make this a smooth transition for both businesses include creating a line of communication between both leadership teams, informing new employees of existing employee handbook policies, stabilizing and reducing HR expenses, and more.
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At peo.com, we make it easier to find the perfect PEO provider for your business. With access to some of the largest PEOs in the country, our agents provide high-performing options that will unlock your business’s true potential. If you’re ready to take your business to new heights, connect with our team today to shop PEO quotes and receive competitive pricing within 24-72 hours!