Understanding How to Best Manage Law Firm Mergers
All mergers are different, and at times, the end goal of setting up a new firm that results from the merger is front and center in one's mind. Joy and pure excitement come at closing the deal, but if this is a family enterprise, a mixed bag of emotions follows fast.
This law firm may be the family legacy, and it probably was understood that the next generation would eventually take over. But there are many factors that can get in the way of this happening: Internal family dynamics or external economic factors that result in a family firm entering into a merger.
Managing Emotions
That's when a host of emotions rises to the surface. The thought of someone else running your law firm, the office you worked so hard to build, seems wrong. "No one can run it like me," "They will ruin my name," "What will I do once I don't have this business?" "Do I define my business or does my business define me?"
These are among the thoughts that begin to run through a lawyer’s mind, and if it's a multigenerational firm, the older folks may feel nostalgic while the younger generation is apprehensive. When the firm is sold to an outsider, feelings of failure can creep up. The nagging questions from one's subconscious: "What could I have done differently?" "Am I failing my children (my parents)?" "What will my role be in the new firm?" "Will the new owners need me at all?"
This is when harsh reality hits like a cold shower. Two firms are joined together, and cost savings are sought. People are going to be laid off. This hurts because some of them will have worked with you for years, making such decisions tough and painful.
From denial to anger to sadness and finally acceptance, the range of emotions that one experiences is sometimes like a period of mourning. Here is some advice:
Accept the emotions. Give yourself permission to feel them and accept the fact that they are normal. This is one of the hardest things to do.
Find your new path. This could be outside the firm or from within, but it may look very different than your current career path. It's scary, but exciting at the same time.
Take a breather. Take some time away from your firm and regroup. You can return more refreshed and ready to take on the next set of challenges.
Sadness is inevitable. You've lost something that has been dear to you. Embrace this opportunity to discover new dreams, new paths, and new adventures.
Addressing Morale and Productivity
So, you're past the period of low morale and decreased productivity among the rank and file, which, of course, is a by-product of many mergers that attempt to slam together two diverse firm cultures. The associates or support staff who lose their jobs and those left behind — so-called survivors — now have to deal with the loss of institutional knowledge, increased workloads, and a sense of uncertainty about their futures.
For some, this can be devastating psychologically and can lead to stress-based illnesses. Yes, mergers can be messy. That is why paying attention to the human factor is a wise move. Before you make any decisions, call us today to speak with an expert.