Marrying Businesses

 From time to time opportunties come along for businesses to join forces for one reason or another. Marriages between companies often occur due to mutually beneficial aspects of the businesses' activities, client bases or because efficiencies can be identified and implemented to save money in the long run. This can be for a number of reasons, some of which are listed below:

  • pooling of resources
  • reduction in staffing costs due to duplication of roles being removed
  • less office space needed for less people
  • less overheads i.e. electricity, gas for heating, office equipment
  • more efficiency in staff time

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 The largest area is in terms of the amount of time staff can spend on meaningful tasks that benefit the business rather than duplicating tasks across both businesses. For example, if the two companies communicated regularly about the same data and had to carry out reconciliation of data, by marrying the two companies together, this would no longer be required as a shared system could be implemented.

Although there would be an initial investment required to set up the systems and develop software, and training would need to be delivered to ensure all staff are on the same page, the benefits from reduced time on the same activities would give reduced costs in the long term.

In addition, the reduced number of staff needed for duplicated tasks could be redeployed elsewhere, meaning your new larger company can develop new areas and become an industry leader, excelling against the competition from the investment in new areas that staff are freed up to be involved in.

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