How Mergers Will Affect Your Employees

business merger

Companies buy and sell one another on a regular basis. This can lead to brands that normally would be considered competitors being owned by the same parent company. For example, Pepsi entered the restaurant business by acquiring Pizza Hut, and this division has gone on to become what is now known as Yum! Brands, the corporation that owns the Taco Bell, Pizza Hut, and KFC entities (among others). Business employees can experience a large change in daily life during a merger such as this.

Olen Law Office, a business attorney Bucks County PA, has the experience to navigate you through such a transaction.


When two entities come together, particularly if in the same industry, many job positions will be duplicated. However, this does not mean that there will be a need for twice as many of that particular position. This particularly holds true for support staff, IT, and director-level positions. Similarly, areas, where the personnel was spread thin, could be considered spread thinner if the other company had zero employees performing similar work. 

Overlapping brings on its own issues. People in similar positions may engage in dominating behavior, trying to assess being a “lead” in situations. It can cause people concerned with excess to begin seeking employment elsewhere. Many times, this comes from… 


Because of duplicate workers and new needs, many employees will most likely be transferred from one department to another where similar skills can be used. Someone who is used to procuring for a restaurant type of industry may now be transferred to procuring for corporate development. Sales associates especially get hit with this as it is generally assumed that if you can sell one thing, you can sell anything. Even director-level management may be reassigned from something such as Director of Finance to Director of Procurement. Bucks County business attorney Elliot Mark Olen has helped several organizations navigate this difficult time.

Between overlapping and reassignment, employees will experience emotions that come with such changes. This can include:


Changes that affect the standing chain of command and structure can lead to changes in an employee’s daily life. Wondering if your role or supervisor will change, if you will be working your same job, or even if you get to keep you will get to keep a job is taxing. Such a state of limbo separates people from the need to feel secure. Bucks County Business Lawyer Elliot Mark Olen can streamline such transitions and keep stress to a minimum.


Because job security can feel like a constant threat, employees will stress about their performance. This may be from worrying that they’re doing well enough to be kept where they are, or maybe if they will do well enough after a reassignment to be able to keep that job. The nervousness can lead to small mistakes that employees wouldn’t normally make, which only serves to feed their anxieties. 


The unfortunate reality of humans is that there is no guarantee that any two will necessarily get along. In environments where competition may be fueled by the idea that worth has to be proven to keep security, or try to demonstrate superiority, conflict is bound to arise. It is important to be prepared for this in the beginning. 

When it is time to merge with another entity, it is important to have someone experienced by your side. Elliot Mark Olen, business attorney in Bucks County PA, can help mediate disputes.

Choosing the Right Business Lawyer Buck County, PA

A company merger is so much more than just 2 + 2 = 4. Virtually no aspect of the business is unaffected – even email addresses may have to change. If you are looking for an experienced business attorney in Bucks County PA, contact the Olen Law Office today!