Strategic Growth and Mergers

A structured consideration of planned expansion by merger or otherwise makes sense

Merging two professional service organisations comes with built-in challenges outside the normal business realm; egos and personalities for a start. Such projects are also enormously stressful, time-consuming and a drain on leadership and ultimately management resources. There consequently need to be strong imperatives for merging two or more organisations to create a greater whole. This must make good sense in terms of the organisation's vision of where it wants to be, it must make strategic sense, and importantly, be wise in terms of cultural fit.

Merger may not be the only option; sometimes, proposed mergers do not make sense. Furthermore, an internal de-merger or even an merger of one or more groups may sometimes be the best preliminary step to creating that greater whole in the long term. An independent overview and evaluation of these issues can help identify appropriate options, which might otherwise be uncomfortable for a firm to address. A structured implementation, including appropriate consultation and communication, is also critical for the long term success of any merger.

"An objective, structured approach to mergers can pay dividends; it will help firms decide if strategic and cultural fit is right, assist with the resolution of minor issues, and the identification and working through of the major ones. Having been directly involved in various forms of firm merger and practice group de-merger in my time running large firms, I believe strongly that this all needs to be undertaken within the framework of strong leadership, decisive decision-making and very good communication. Getting mergers right often seems to be about it making strategic sense, followed by a good communication and consultation process coupled with good decision-making, and finally, making sure it all integrates well after the merger. Too often firms go off half-cocked by missing one or more of these critical steps. This can be time-consuming and costly, and sometimes results in the unnecessary derailment of an otherwise good opportunity."  Sean Larkan, Chairman, Authentikos

"With Sean as managing partner Werksmans undertook a number of key strategic initiatives to expand its professional base by absorbing other firms, and my own admission as a partner was part of that.  These were major undertakings for the firm which changed its strategic development and have been of lasting benefit.  Sean played a significant role in integrating the professionals who joined the firm during that period and ensuring the success of that initiative. "

Jeff Bortz, Senior Litigation Partner, Werksmans, South Africa

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