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Recent news reports about a slow-down in the economy, and the spate of
mergers and acquisitions across organizations, has led to several
people 'Senior and Junior' pressing the panic button with their careers.
Look at this scenario: Ram (fictitious name), working for company X for
the last 2 years in a middle to senior position. All of a sudden, there
is a bid to acquire X, and murmers begin that the pink slip days are
nearing. What does one do??? Actively, if not desperately try to get
into calmer waters. Finally manage to wangle a good role in a
relatively safer haven, Y only to find: that this company is also up
for grabs!!! Helpless and screaming -- with no support system or
Godfather, Ram has jumped from the proverbial 'frying pan into the
fire'.
This is becoming an increasingly common phenomena and provoked me to
take a step back and analyze this drama which keeps getting repeated in
people's lives. Having looked at multiple scenarios, I thought it would
be a good idea to put down a checklist which will help a person handle
a potential upheaval in his/her organization:
- Has my company's growth plateaud/sliding in recent times?
- Is there a risk that people can be laid off regardless of us being acquired due to our current poor performance?
- Is the acquisition a positive move from an overall organization perspective?
- Have my performance ratings been above average consistently?
- Do I have a good boss?
If your answer to all the 5 questions, is broadly a YES, then it may be
prudent to 'Wait and Watch' rather than jump the gun. The answers to
the above suggest that the acquisition is probably in the best
interests of your company and your goodwill should serve you well in
the new scenario.
However, should some the answers be negative, then you
may well want to explore options, while keeping in mind some of the
above caveats - "To prevent the frying pan to fire syndrome":
- Is the company growing at a healthy rate?
- Do I report into a good boss?
- Is the overall mood in the organization growth focused or turnaround/survival focused.
While there are no guarantees in life, some of the above questions will
ensure that you atleast do not consciously increase your exposure to
the M&A trap. Evidence suggests, that companies which are growing
at a healthy rate and still building market share are less vulnerable
compared to companies - 'large or small' which have plateaud in terms
of growth.
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