Let’s say that you have spent many happy years working for your current employer. You enjoy your job and the people that you work with each day. Everything is going well, and you’ve no reason to worry about your future with the company.
That is until you hear the news that your employer is merging with another firm! Suddenly you start to wonder how the news will impact your role within the business. After all: you’ve got lots of bills to pay each month. If you lost your job now, you’d end up in financial ruin!
The thing is many company mergers happen with little to no change to people’s jobs. Still, that doesn’t mean nothing will become different for you. Have you heard that your company is getting sold to another firm? If so, you will no doubt have questions about how that affects your future.
So, what happens when a company merges or get sold to someone else? Here is what you need to know:
You Should Still Carry on Doing your Work
Until you have more information from your managers, it’s business as usual. The sale of some companies can take months, if not years to complete. In general, the larger the business, the more complicated the process becomes. It’s important not to panic but rather carry on until you have some facts.
Sometimes company owners could do a U-turn and decide not to sell after all. Instead, they might take their businesses in a different direction. All too often, people think they’re going to lose their jobs when they hear buyout rumours.
It’s important to keep a level head and just carry on with your work. Only when you hear the facts should you decide on a course of action. Otherwise, you risk putting your career and future earning potential in jeopardy.
For example, the future owners of your business may wish to promote you to a new role. You could have more responsibility and, of course, a higher salary. It would be foolish to “jump ship” now without learning how any changes will affect you first.
Both Parties Need to Agree on Terms
Before the sale of your employer’s business goes ahead, both sides have to agree on the terms. Part of that process involves the roles people carry out within the company right now.
The law gives employees legal safeguards when it comes to employers selling their businesses. In particular, the TUPE guidelines and regulations cover such actions. For instance, you will become an employee of the new owners but under your existing contract.
The only time those regulations don’t cover you is when company shares get transferred. In essence, you still have the same employer: the business isn’t technically getting sold.
Once you have the facts of what will happen during the sale, it’s time to act on them. The good news for many people is they need do nothing at all. Many firms become part of a group of similar businesses. They still get run as independent firms and the same branding applies.
The only differences are to internal senior management. Plus, it’s likely the new owner will invest more money into the company. That means the firm can grow at a faster rate. For you, that means there will be more opportunities to rise up in the ranks.
But what if the news doesn’t sound too positive for you? There are some steps you can take to safeguard your financial future. Here is what you should do:
Prepare for an Interview for your Own Job
As weird as it sounds, you might get interviewed for your job. If your employer isn’t profitable, the new owners will need to cut costs. One tactic some people do is make staff redundant.
It’s important that you prepare for getting interviewed for your own job. You need to show your new employers that you’re a valuable asset to the company. What’s more, you must also show them the importance of your role within the organisation.
It’s down to you to convince the new owners that both you as a person and your job is crucial. Otherwise, you might get made redundant.
Consider Exploring New Career Opportunities
Some people seldom like to leave their “comfort zone” when it comes to employment. If you get too used to being somewhere, getting forced out could become a shock.
It’s important to prepare yourself in case you do need to leave the business. You should consider evaluating other career opportunities. You might get you could get a better job earning more money elsewhere. Or you may wish to choose a new and more exciting career path.
The possibilities are endless. Think about what you enjoy doing the most. Next, decide which types of jobs are for you.
Consider Working for Yourself
If you don’t enjoy the prospect of working for someone else, why not work for yourself? Some people dismiss self-employment as being too risky or not “guaranteed” income. The truth is there are no guarantees in life!
As you can see right now, job security is something that can never be 100% guaranteed. Working for yourself will give you the freedom to pursue your dreams. Plus you’ll also have a flexible work schedule. The latter is especially useful if your employer doesn’t offer flexitime.
Thousands of people decide to start working for themselves each year. Plus, many can get financial support in the form of grants and investments. It’s worth considering if you have an idea that you think could become successful.
Put your Finances in Order
If you have to take a pay cut, there’s no denying it will put a strain on your finances. Now is the time to get your personal debt in order. For instance, getting a consolidation loan could lower your monthly payments. Cutting back on unnecessary expenses will also help.
There are plenty of things you can do to keep your costs down. Changing things now will ensure you don’t have a financial meltdown later on.