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This is indeed a big subject here; a worldwide pandemic
COVID-19 also known as corona-virus has landed in Europe.

My third blogpost is going to handle our subject of company mergers and how this big scandal we are having will affect on business acquisitions in Finland. I was impressed by an article I read one day in Talouselämä and decided that I cannot miss a subject this juicy. I will take a perspective of my main subject: clients and stakeholders, so let’s get going!

I put a picture of this article in the blog if you want to take a look.

After I recovered from this huge initial shock, I decided once again to look outside of the box. There has to be something good in the middle of chaos as well. When everything around you has burned down, there is a chance for new things to grow and prosper.

What comes to acquisitions, this situation will open up new chances to grow. I don’t know why I almost was grieved when I read this ”This crisis gives the vultures something to buy”. Why on earth are we taking this negative point of view.

Maybe we should think that these ’’vultures’’ will give an exit for these corporations which indeed face huge financial challenges at the moment. We cannot affect on what is happening right now.
There is a saying: buy or be bought. I think it means that you are going to face an acquisition at some point no matter if you wanted it or not. At the latest the retirement will take care of it. I think in this situation it is better to be bought than float for bankruptcy. I do not want to belittle anyones lifework, it is not what I mean. In this situation rational decisions just have to be made.

We don’t want to drown with the ship, or do we?

Effects can also be seen when we take a look at business on a daily baisis.
Clients and stakeholders can be in trouble because of the situation as well. Ilona Hiila posted a great blogpost about the importance of an online shop for not only the customers but for B2B-sales as well. I will grab to that and say that this B2B-sales is going to be a second big thing that we should handle. Hiila says also that this change is going to be permanent and I agree on that.

In the future we should be able to work with our clients and stakeholders inline so that we do not have to meet anyone. Thisway we can minimize the risk of infection. Most of the cooperation is happening this way already, but from now on all communication should be happening without any human connection.

You can read the whole post here. Press this

On daily basis this means that the clients cannot be visiting your
office bringing any of those receipts or other vouchers or forms. I think it does not make sense to touch a concrete document at all. I would consider ’’receipt for accounting’’ -applications for example. If you are not yet using these electric signatures, I would recommend to take it to your daily use. Better safe than sorry, right? 

With stakeholders this means that you should not be close to suppliers and
avoid contacts as much as possible. Not all encounters with stakeholders can be avoided, but you can prepare well to those situations by our own actions. With those stakeholders that you absolutely have to meet in person, the parties should discuss the implementation of safety operations and meetings. If these changes are going to be here to stay, we just kind of have to develop new ways of working.

I am asking: How do you plan to develop your business during this pandemic and after that?

Stay safe!

My subject as I told you on the first post on the front page is the risk of clients and stakeholders. When companies buy other firms, one of the biggest goals is that the clients of the firm that is bought will remain as clients. This is an easier way to earn profits than collecting new clients from here and there. What if these clients from smaller businesses do not want to switch over for this new merged business? If the goal is to bring the old clients over during acquisition, there is a chance that this will not happen automatically.

1 During acquisition between two accounting firms, the main company should have some kind of bonus for the old clients of the purchased firm.
It is sensible to consider to offer some kind of discount or other benefit for your accounting services. If you are providing other financial management services, you can offer a discount from those services as well. That is also a good way to make additional sales.

2 Keep employees on your payroll
A relationship between an accountant and a client can often be very close. Some accountants can handle one accounting firm for years or even decades. The relationship between an accountant and a firm is something that should be maintained because it gives the customer extra value. Ideal situation is that the same accountant keeps working with the same firms’ accounting just like before the fusion.

3 Make the impression of continuity and stable future
Succesful and growing business creates an image of stable and reliable partner. Continuity and easy cooperation are important values for the client which helps creating feeling of continuity.  Client image and branding will (well, of course) maintain your corporate image. These factors may make new companies join your client.

4 Be easy on the pocket
Just like in all business, you have to win the markets and the best way to do it is the lowest price and the best quality. Keeping the same prices (or offering the same accounting service more cheaper) client will be happy even if they have to change accounting firm.

5 Remember the customer orientation
Companies which are clients of a smaller firm, could prefer more personal customer service. They can be afraid that the big accounting firm does not treat them as personally. The impression that the client will be treated personally will give them major value.

”Kasvuun yritysostolla” is a finnish book which Riskiryhmä uses as a reliable source 

I hope that this article gave you useful advice. If you want to know more, keep reading more posts that will be coming this spring. You can also leave a comment if you want me to write about some specific subject.

Did you like this post? Please give me feedback and leave a comment!

I have been working ten years in restaurant industry as a chef, waitress and a bartender. Vierumäki (where I am working at the moment) is a large sport and wellness company in southern Finland. Vierumäki Country Club offers sport education, multiple different restaurants you can visit, business services, training center services, accommodation and so on. My job there is to keep customers happy and satisfied while I prepare cold foods as a pastry chef. My passion is to make beautiful, aesthetic starters and deserts. I also like to use our staff benefits, like the golf indoor facility.  

The journey of Vierumäki has not been easy the past few years. They were almost in bankruptcy
and the whole business was about to shut down before the business angel, billionaire
Mika Anttonen (Founder of St1) gave a new life to the business. His company Keele Co. bought  the whole business and gave a huge boost for the whole area. He was not happy about the condition of the Vierumäki Country Club at first, but he said recently that the profit is going to get better already this year. I am looking forward to what changes is going to be happening at Vierumäki during this decade. I think I have big subject here to write about as well. 

Attached link contains more thoughts about Vierumäki.  You can read it from here