Getting two companies together is often like trying to arrange a marriage. There are often post merger issues that undermine the original intent and goals. Those issues can be fatal to the merger, but when mergers work, they can work brilliantly. I don’t have to go far to outline a great merger. Three years ago, Transworld Business Brokers and United Franchise Group merged Franchisemart/Biz One Brokers and Transworld into Transworld Business Advisors. Since that time, Transworld Business Advisors has grown to over
80 units across the United States, and has set up franchised offices in Canada, Central America and the Middle East. We are ranked us
as one of America’s Top Franchise Opportunities for the last three years, and as one of the Top Fastest-Growing Franchises in the world for the last two years by Entrepreneur Magazine.
Transworld Business Advisors is now a company that is a leader in:
- Business Brokerage – selling existing companies
- Franchise Consulting – helping people choose and buy a franchise (we have over 200 available)
- Franchise Development – helping successful companies franchise their concept.
Why is our merger working?
7. Complementary Strengths – Transworld Business Brokers was a leader in business brokerage with over 30 years of experience. United Franchise Group was a franchising giant for over 25 years, growing brands like Signarama and Embroidme. Together we are the experts at both brokerage and franchising.
6. Humble Leadership – Yes, perhaps Ray Titus and I have pretty big egos, but we both have the ability to listen, admit when we are wrong, and communicate effectively, honestly, and with respect. We have clearly defined leadership roles in our merged firms that are working extremely well.
5. Individualized Systems – We recognize not all economies of scale can be realized, and trying to force some of the companies’ individual departments and systems together can cause chaos. Some of Transworld Business Advisor’s systems will remain independent of some of the systems at United Franchise Group due to our differing services.
4. Harmonious Employees – The staffs of both companies “get it.” It isn’t always easy bringing two groups of employees together. The
philosophy of “it was better before the merger,” or “the old (or OUR) system was more effective and easier” creeps ups often. However,
with continued education, strong leadership, positive reinforcement, and addressing the concerns, it leads to an eventual “buy in.”
3. Acceptance – Accepting that nothing is perfect and there will be bumps and bruises along the way is very important. Integration is
never smooth or rarely goes exactly as planned. By focusing on the positives, and having an eye on the merged company’s strategic goals can get any merger through anything that transpires.
2. Profitability! – Any merger is going to be easier to manage if there are not cash flow issues. Transworld Business Advisors has been profitable from day one. The fact that both companies have conservative money philosophies has clearly worked well for us.
1. Our Idea and Plan Worked – We are a much better company after the merger. We absolutely could not have achieved this level of success as quickly without each other’s expertise and resources. Our franchise system has proven to be successful and we look forward to watching our franchise and franchisees flourish across the world.
Being an entrepreneurial company requires taking risks. Mergers are risky, but if you minimize the downside though great legal advice, proper paperwork and acquisition guidance from qualified professionals (like the ones at Transworld Business Advisors), the upside is well worth pursuing!
Andy Cagnetta owns and operates Transworld Business Advisors. He joined the company as a sales associate and later purchased it. Transworld is an international franchise business and franchise brokerage, with thousands of businesses for sale and franchisees in the United States and Internationally.
No Comments