Growing National, Staying Local: 4 Things to Do When Acquiring a New Business

By: Gyner Ozgul, Chief Executive Officer at RAFTR Roofing + Exteriors

There are a lot of benefits to an acquisition for all parties involved. Acquiring companies gain access to an established local presence and a built-in customer base, while the acquired organizations get access to more resources and a better infrastructure. It’s an offer that looks great on paper, but executing it well is a different story.

The long and short of it is people don’t like change. No matter how much promise or benefit can be gained, there is always a level of resistance. So, when navigating the waters of transition and integrating a new business into a larger one, it’s critical to take things slow and be as transparent as possible.

At RAFTRx, we believe in the power of local business with the reach of a national brand. As a roofing and outdoor materials platform, we aim to connect local, trusted roofing companies within a national network of suppliers and resources to enable them to scale their business and serve more homeowners. We’ve learned a thing or two about bringing new businesses into the fold, and here are a few of the key best practices we’ve learned:

Maintain a level of consistency

Part of what you’re purchasing when making an acquisition is the system in place and the status quo. This business was doing something right; it’s how it got this far, and gutting the entire thing would devalue your new assets. It can be tempting to rush into a flurry of changes and improvements. After all, that was part of the reason for your purchase: the potential to improve, but too much change too quickly can sour the views of existing employees and customers alike.

It’s critical to maintain some level of familiarity during a transition of power, especially early in this stage. Your new customers do not trust you yet, but they trust the existing brand. Lean on that trust by keeping things the same where possible. One example we’ve found is using the same communication channels. If customers are used to traditional mailers or are pitched by partners rather than direct sales, stick to those methods.

This doesn’t mean you can’t add to or change things as you move along, but it shouldn’t be all at once.

Maintain the company culture

People don’t like change, especially when it comes to their jobs. A change at work could cause people to wonder if they still have a future with the company. It’s critical to sway these fears and be upfront and transparent with the company’s direction from here. Tell them what changes to expect, your goals, and how they could impact them.

Employees need to know the how and why of impending changes for two reasons. One, they know the audience best. If they think a planned change won’t work, they can raise concerns beforehand. Two, they know how to communicate with the audience best. Again, we’re all resistant to change, but hearing from a trusted source can make us more receptive.

Provide incremental value

“What do I get out of this?” That’s the question everyone asks, especially when there’s a change. While maintaining quality standards is crucial, customers eventually expect more or else they’re left wondering – what was the point of becoming part of something larger?

And that value doesn’t have to be much; little improvements will suffice – better billing, improved customer service, and more resources. At RAFTRx, our view is that we’re keeping the same quality of service and trusted brand while elevating them with improved infrastructure and resources.

Use previous leadership as your agents of change

For a smooth change in power, you need to have the buy-in and support of the original owners. It’s crucial to create buy-in before the acquisition starts. Present owners with a clear plan for the transition, including details of what will happen and when. At RAFTRx, we detail the first year or more. Legacy owners need to know this information because they will be your agents of change with the existing employees. They have their trust. You do not.