Client: Private Small Business
Service Category: Strategic Planning
Leadership Logistics LLC was approached by a private and successful small-town business, “Business A,” who sought counsel from LL about potentially merging with another small business in a different community, “Business B.” The client required mediation if the merger were to be conducted.
LL began evaluations, and the discussions with Business A provided clarity that a merger would make sense if both parties fairly set short-term and long-term expectations. Business A had extremely strong “needs,” while Business B had very strong “wants.” Collectively, a marriage between the two appeared to be in the best interest of both businesses.
The first step of LL’s game plan for this client was to coordinate a meeting at a neutral site with both businesses, aiming to evaluating what each side could offer the other and to manage expectations. Business A, the party with strong needs, had two large pending contracts that were about to be enacted and subsequently was seeking a workforce, logistics management, and a facility. Business B, the party with strong wants, could provide a workforce, leadership, facilities, and had a desire to shed its status of a business owner in favor of the role of business manager.
LL provided the client with a detailed outline at the conclusion of the meeting, along with points of interest that needed to be both cultivated and agreed upon before further steps were taken.
After additional discussions with both businesses, and ensuring all points of clarification were being resolved, it was agreed that the merger should be conducted once Business B secured pending contracts.
Ultimately, LL’s client was thrilled that their needs were met – their own facility would not be at risk, employees were excited about new projects and opportunities along with their payroll, and that the logistics manager position was as desired. With the signing of all contracts, this merger has all indication of an excellent business model being constructed and evidence of a team with huge upside in years to come.
