A key challenge is to create a harmonious and productive work environment for two groups of employees from different cultures and to develop an efficient reporting structure for the combined organization. A major reason to merge with or acquire another agency is to consolidate markets. Moving books of business carries its own set of problems. Further, issues invariably arise regarding servicing considerations. Employees can become extremely anxious during a transition, and this may result in the loss of key people.
People are the heart of an agency.
Replacing experienced employees is difficult at best. Principals must devote substantial amounts of time and effort to ensure a smooth integration of staff. Keep in mind that any transaction involves an opportunity cost. Diverting time and effort from a successful agency operation to integrate a new acquisition presents major challenges. Harbor Capital has years of experience in facilitating agency assimilations, and we believe the most important aspect of the deal is ensuring that both entities have the same goals.