Building a Stronger Company with Strategic Acquisitions
At The Reserves Network, acquisitions have been more than just growth strategies—they’ve been opportunities to align our corporate vision and expand our reach. Since 2011, we’ve overseen six significant acquisitions, each driven by a desire to grow into new markets and specialties, bringing top-tier talent into the TRN family.
Working Through Challenges
Every acquisition brings its own set of challenges, and the biggest one is always culture matching. Many firms we acquire are run by owner/operators who see merging with TRN as a succession plan, and their departure can create a leadership vacuum that our management team must fill.
Integrating our sales and order fulfillment processes with those from acquired companies involves managing numerous changes simultaneously. Each company’s unique strengths and established brands can create some tension, as the people involved on both sides are rightfully proud of what they’ve built. However, with careful management and understanding, these challenges can be successfully addressed.
Benefits for All
Our acquisitions benefit everyone involved, as well as our company culture. A larger, more diverse firm can compete better and provide more comprehensive services to our clients. This growth also creates career advancement opportunities for our team.
While growth can bring both excitement and fear, it ultimately fosters a winning culture. For our clients, the expanded capabilities and enhanced service offerings translate to better partnership and support. Employees, on the other hand, find new avenues for professional development and career progression.
Advice for Leaders
For leaders considering acquisitions, prioritize due diligence and culture fit. A big mistake you can make is underestimating the importance of a good cultural match. Engage with key players and front-line staff to understand their values and expectations. What are they most proud of? What do they love most about what they do? Why did they choose to work at this company? These “who, what, how, and why” questions are every bit as important as client lists, trailing twelve revenues, and EBITDA.
Make sure you have the resources for post-acquisition integration, including IT, HR, and leadership support. Change management of this scale can be overwhelming. Support your team to make sure they have the time needed to devote to the acquired company while still supporting the “mothership.”
Perhaps most importantly: try not to fall in love with an acquisition prospect. In other words, be ready to walk away if something doesn’t feel right. A bad acquisition can drain resources and energy, so make sure to evaluate thoroughly.
When it’s right, a merger is a beautiful thing. But when it doesn’t work, it’s an incredible drain on resources and energy. While no merger is ever perfect, I’ve found it helpful to keep an opportunistic mindset. Remember the reason you’re acquiring the company and be open to the changes and insight you can learn along the way.
Personal Insights
One acquisition that profoundly impacted TRN was Summit Technical. Their straightforward brand positioning statement, “placing engineers at mid-market manufacturing firms,” revolutionized our messaging and strategy. It gave us the clarity we needed to truly articulate our place in the industry.
We also began focusing our strategies on providing talent at every level – from design and production to distribution and support. This strategic alignment has been the cornerstone of our success for a decade.
Aligning for Success
TRN’s journey through acquisitions is about much more than just growth. It’s about aligning our goals, improving our services, and building a culture of resilience and adaptability. Embracing these opportunities with an open and forward-thinking mindset is the key to our sustained success.
