• CCG

Is Your Investment Firm Considering a Merger or Acquisition? Read this!




If you have never been through a merger or acquisition, it can be overwhelming and scary with the uncertainty that lies ahead!  Before you begin, please note these few tips:


  1. Get a valuation completed on the firm that is getting sold or dissolved.  This will provide both the buyer and seller with the most accurate information.

  2. Look at how to communication with the clients of the selling firm so you can retain them after the merger is complete.

  3. Look at how the selling firm’s culture compare to the buying firm.

  4. Look at where your pain points might be and how you will address them.  Maybe consider:

  • How will you communicate the transaction to your clients and when?

  • Are your service models similar between the two organizations?

  • How will you realign your staffing needs before, during and after the merger is completed?

  • How will your technology platforms integrate with each other?

5. Get a marketing plan together on how you promote the new entity after the merger is completed.


One of the top concerns firm’s have when completing a merger or acquisition is properly communicating with their clients so they are retained throughout the process.  Of course, this is extremely important BUT do not under estimate the value of properly communicating with your employees as well!   Employee communication is essential for a successful transition, both for the buying and selling firms.  This can be a difficult time for your employees regarding the uncertainty of their employment with the new entity so be as open with them as you can regarding their long term responsibilities throughout the process.


When considering a merger or acquisition and to make the transition successful, IN Research noted in a recent white paper that you should consider the Five C’s:

  • Culture: business model, value proposition, ideal client, product suite, advice philosophy, client segmentation and service model;

  • Character:  values, advocations, client testimonials and philanthropy;

  • Capability: case examples and reviews, investment philosophy, service model;

  • Capacity:  workflows and having the right staff in position;

  • Capital:  having the liquidity to make the purchase


For more information about mergers and acquisitions contact info@cucharalegroup.com and learn how CCG can assist your firm with developing and implementing a transition plan.

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