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  • Writer's pictureJoel Scoby

3 Reasons Why “Background Screening” is Important at the Time of Mergers and Acquisitions

If your company is in a position to acquire a new business or merge with a different business, then explaining the profitability and the growing market share around the merger or acquisition can overshadow any concerns that there may be regarding staff and human resources.

However, the importance of background checks in mergers and acquisitions is high. It is a vital part of the process and it can help to significantly reduce risks that are associated with the staff in the other businesses.

For any merger or acquisition, background screening is something that needs to be an integral part of what you do. Not only will it protect your company and your brand, but it can help to keep the new business safe. Here are three reasons why background screening is important for mergers and acquisitions.

1.Brings recruiting levels to the same standard

When you are merging with another company or are buying a company, there will be existing staff that will then become your staff as part of the process. There may be some standards that the previous company had when it came to recruiting. However, you won’t necessarily know what these were and they could be very different to your own. Staff may have not had a background screening as part of their previous recruitment, so by having background screening through mergers or acquisitions, you are bringing the other companies recruitment to the same standards as your own. If staff are shown to be unsuitable, then it is better to find out sooner rather than later.

3. Keep your reputationy

When you merge with another business you are creating a brand new, cohesive business. When you acquire another business, they are becoming part of your existing business. As a result, it is vital to look after your business. With background screenings you can protect your business by ensuring that only suitable and trustworthy people are working for you in the newly acquired or merged business. With background screenings you can get full-service vetting before you sign any new contracts and make sure that your business is protected and in the safest of hands.

2. Keep your reputation

When a company goes through a merger or an acquisition, there will be some people close to the business or who are previous clients or customers who may not be happy about that fact. They will be proved right if there is no background screening and something does go wrong with the people who you are now in business with. That is why a background screening is important in mergers and acquisitions to make sure that you will be able to keep your company’s stellar reputation throughout the entire process.

The real message with background screenings is that anyone who will be close to your business or working for you is a reflection on your business and what you do and represent. With quality background checks you are ensuring that you are keeping your business, your employees, any assets, and your brand’s reputation secure, by taking these preventative and necessary steps.

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