The fear of losing control of their business through a strategic merger is likely hampering the growth prospects for many successful businesses.
The experience of merging his restaurant business with a pub operator has been much less painful for celebrity chef Matt Moran than many people would expect.
He said that, provided you have the right people to make the transition successful, a merger can actually be a very positive strategic decision.
“In the merger, I don’t think I lost control because I had people that were doing jobs for me anyway. I had a CEO at Morsel before the merger, so it was basically just two companies came together,” Matt said while speaking on the My Business Podcast.
“Bruce [Sullivan] and I are the owners. We’re joint managing directors they call us these days. We have an agreement that if one doesn’t want to do something, we don’t do it. And, I think the strength of the business is that we are 50/50.”
According to Matt, one partner have ultimate control of the business “doesn’t really work”, and he advocated a collaborative partnership approach so that both business divisions can thrive under the merged entity.
“We don’t do anything unless we’re both committed to it. And it seems to work. Look, it’s worked for 18 years for us. It was just the management companies that came together. We became one,” he said.
Hear more business insights from Matt, and insights into how he went from a start-up to becoming a household name in his industry, on the My Business Podcast below:
- Reader question: Can someone block the sale of my business?
By Adam Zuchetti
- Slashing customer response times no pipe dream
By Adam Zuchetti
- Legal view on dealing with errant employees
By Geoff Baldwin