Originally published in Parking & Mobility’s November 2023 issue.

In the world of parking company acquisitions, it’s not uncommon for companywide changes to occur. After all, combining two companies – each with their own history, values, and legacy – is a vast undertaking. While some owners may want to retire, one way to minimize change and create a smoother transition is by working diligently to retain the acquired company’s entire management team. Here, we’ll discuss why that’s an important component to the acquisition process and how that can unlock greater success for both the acquiring company and the selling company.

Building on Established Expertise and Industry Knowledge

By the time two companies are finalizing an acquisition, they have determined that it will be beneficial for their leadership teams to join forces and collaborate. As a result, investing in the selling company’s existing management team often proves extremely valuable for the two organizations. It not only leverages the expertise and industry knowledge of that company’s leaders for greater external success, but it also ensures a more seamless transition for internal teams.

Between the two companies, transparent communication is key. Essentially, this boils down to the acquiring company doing what they say they’re going to do. Through honest words and corresponding actions, acquiring companies assure the seller’s team that the future is secure, creating a sense of ease that leads to greater collaboration. With the understanding that both companies are there to support and strengthen each other’s work, the two can achieve even more meaningful long-term success.

Cultural Alignment and Continuity

Cultural compatibility plays a crucial role in successfully retaining management teams. While no two companies are identical, similar missions, shared values, and complementary company cultures can establish a cohesive environment. This can create a stronger connection between both companies’ existing leaders, ultimately fostering a more unified team and the successful retainment of the selling company’s leaders. Accomplishing this can result in a smoother transition for team members, as well as the overall preservation of the selling company’s unique identity.

When the acquiring company demonstrates their dedication to honoring the selling company’s legacy, it also instills confidence. This indicates to the selling company’s team members that their work is respected and their company’s mission and values will remain intact. With this understanding, they can feel a greater sense of belonging earlier in the acquisition process, which leads to enhanced team member retention overall.

Trust and Relationships with Clients and Team Members

At the end of the day, successful acquisitions rely on trust. After all, the seller is trusting the acquiring company with the business to which they’ve dedicated their lives. That’s why establishing and nurturing trust is vital during an acquisition. When acquiring companies back up their promises with corresponding actions, like retaining the existing management team, they send a reassuring message to not only clients, but corporate and field team members, as well.

Because the current management team has existing relationships – both internal and external – and a wealth of institutional knowledge, their insight is invaluable in the continued success of both companies. By supporting these individuals, acquiring companies can ensure the maintenance of existing clients while also leveraging the combined networks and industry connections of both organizations to facilitate significant growth.

Empowering and Motivating Team Members

The decision to retain the management team can have a positive impact on employee morale and motivation. The continuity of leadership instills a sense of stability and helps demonstrate an ongoing commitment to building a unified company culture. As the two organizations collaborate and establish a new rhythm, fostering the budding connection between team members also creates an enjoyable work environment that inspires people to participate. From citywide scavenger hunts and holiday parties to quarterly lunches and volleyball games in the park, team-building events bring people together outside their daily routines and give them space to form strong bonds beyond the walls of the office.

Additionally, investing in team members’ career development plays an integral role in team motivation and retention. When acquiring companies offer opportunities to transfer to other cities or establish clear career tracks for upward mobility, it enables the seller’s team to capitalize on the business’ expansion and utilize the newfound paths for personal and professional development. With increased opportunities, the work environment offers these team members additional inspiration for pursuing a career within the companies, which benefits the organizations collectively.

Commitment to Successful Integration

Retaining the management team requires a well-thought-out integration plan. Because teams entering new dynamics can feel apprehensive or concerned, it’s important to simplify the process as much as possible. From establishing transparent communication and distinguishing clear roles and responsibilities to addressing potential overlaps and aligning goals and objectives, there are numerous key strategies that can ease the transition.

Integration also requires companywide commitment. This includes the acquiring company showing complete support across departments and divisions. Bringing everyone, from C-suite executives to HR team members, on site to conduct the onboarding process in person – as opposed to video calls which, while efficient, lack opportunities to build camaraderie – demonstrates the entire organization’s dedication to welcoming the new team and building a lasting partnership. It leads the way for active collaboration between the acquiring and selling teams, driving synergy and promoting a unified vision.

Retaining the selling company’s entire management team during an acquisition can be a transformative decision with numerous benefits. By tapping into established expertise, maintaining cultural continuity, nurturing trust, and empowering employees, the acquiring company sets the stage for long-term success. By following effective integration strategies, the transition can be seamless, resulting in a united and thriving organization poised for growth in this dynamic industry.