Minimizing Risks Of Employee Defection After A Merger Or Acquisition
Chris Stief's article "Minimizing Risks of Employee Defection After a Merger or Acquisition" was published by TLNT on August 24, 2010.
Employee attrition following mergers and acquisitions is so common that it has been the subject of psychological studies, has been written about in Human Resources publications, and even has spawned its own name — “Merger Syndrome.”
Back in 1986, Psychology Today published an article called, “The Merger Syndrome: When Companies Combine A Clash Of Cultures Can Turn Potentially Good Business Alliances Into Financial Disaster.” What can an acquiring company do to manage this risk?
- Check the old restrictive covenants – Do they exist? Are they enforceable?
- Will you have standing to enforce the old covenants after the deal closes?
- Think about new covenants.