What Is a Strategic Acquisition?
A succession plan for your business is not just a plan that states what happens when you retire or decide to leave your business. It can be used for all levels of employees as a contingency plan when employees retire, resign, get sick, fired, or pass away. It is a means to identify and develop employees that you feel may become future leaders of your company, not just at the executive level but at all levels.
Having a succession plan in place helps businesses prepare for any circumstance by knowing in advance which workers are qualified and trained to move up in the company.
This is an important part of a business’ plan and is needed to keep continuity when personnel leaves unexpectedly or otherwise. These plans avert potential organizational chaos and keep the company running without any negative impact. Identifying future leaders is good for employee morale and can increase employee retention.
Having a succession plan is smart for any size business, whether it is a large corporation or a small, family-owned operation. To have one, you should talk with a business lawyer Washington, DC has to offer from the office of Brown Kiely, LLP.
Strategies for Developing a Successful Succession Plan
Plan Ahead and Be Proactive
Identify prospective employees or candidates you feel would do well in a leadership role. Assign that employee an executive mentor to help train and develop for a possible role in management. This provides you with a safety net in the event someone in management leaves unexpectedly.
Cultivate the Talents of All Your Employees
Do not just look at the next in line as far as titles are concerned, as a business lawyer Washington, DC has to offer might explain to you, examine all your employees’ talents and skills regardless of their current positions.
Keep records of employee’s achievements and successes. These notes will be helpful when a position in management becomes available. Note the work ethics and attitudes of these employees and use these notes in performance reviews.
Once you have identified your future leaders, have them work closely with their mentors to learn new skills and develop their existing skills. They can do this by meeting one-on-one with their mentor on a regular basis or by job shadowing and training. If you don’t know how to do this, you can speak with a business lawyer Washington, DC respects.
Share Your Vision of Succession
Hold strategy meetings with potential managers to help enhance and develop leadership and planning skills. Share with them the vision you have for the future of your business. If you have a large company, you may wish to share your succession plan with your board of directors or your director of human resources.
Give Your Successor a Chance to Lead
Take a vacation and let the employee you’ve been grooming assume your role while you are away. This will be a good indication of how ready they are — or not prepared — to take on a bigger role in your company.
A business lawyer Washington, DC trusts can advise you on some strategies for making a smooth succession from your business from a legal standpoint. There are several documents that need to be in place and steps to take if you, as the owner of the company, decide to step down from running the company but want to be sure to leave its future in capable hands. To learn more, please call a business lawyer Washington, DC prefers.
If business succession is something that you are unsure about, or you have partners, you may want to consider a strategic acquisition.
What Is a Strategic Acquisition?
A seasoned business lawyer Washington, DC companies trust has a lot of experience in strategic acquisitions. A strategic acquisition is the purchase of company A by company B using stock or cash so that company B can gain a strategic advantage over competing companies. Company B can eliminate a competitor by buying them out, expanding production, or by acquiring the materials for a competitor’s product. There are also various reasons an acquisition can be extremely valuable.
A business lawyer Washington, DC residents recommend realizes that sometimes buying another company isn’t the right move. A few ways to grow your business can be by adding employees, opening another branch of your business, or increasing your marketing and advertisements. If this isn’t sufficient, you may consider a strategic acquisition.
After entering a strategic acquisition, two companies can produce things at a much cheaper cost by achieving economies of scale. This means they lower the average cost of production by increasing the amount of production.
Other Reasons to Enter into a Business Acquisition
- Expanding Your Business
- Typically it is cheaper to buy a company elsewhere and use it to create more business for your company instead of starting a brand new company in the area.
- This is also helpful when you are looking to increase output or move production to somewhere like a warehouse.
- If your company does acquire a warehouse from the former company, then you don’t need to worry about approvals from the city or obtaining city permits because the former company already has them.
- Inheriting Clientele
Clientele and connections of company A is researched thoroughly before a strategic acquisition by Company B. and their clients become the buying business’ clients. Sometimes companies keep the former CEO on as an advisor to keep those clientele relationships, especially with foreign industries and governments. The former CEO can maintain these relationships and add new ones as well.
- Gaining New Products
A business lawyer in Washington, DC knows that when company B buys company A, they may also gain new products to help them conduct business. For example, if company B needs a particular software program to help them with time card management and company A has already patented and developed it, then that is an extreme benefit of their strategic acquisition.
Your Greatest Asset for Acquisition Is a Business Lawyer Washington, DC Clients Depend On
Having a solid financial advisor and business lawyer in Washington, DC to help guide you is essential for securing the best interests of you business. They will be able to recommend companies for you to purchase before making any decisions and your financial advisor can assure that you have the capital and that the acquisition is worth the investment. Your Washington DC business lawyer can also ensure your rights are protected as a buyer and can handle unexpected issues that may arise during the process. Business acquisition laws can be complicated which makes a skilled business lawyer Washington, DCthinks is invaluable!