Sign Company Manager Frets His Shop’s Merger

YEAH, I KNOW, it was all explained to me and everyone could see it coming from miles away, but I’m nervous as hell about our merger with a crosstown rival.

I’ve worked for Estea Sign Co. for 27 years, the last 15 as manager of the design department. An hour ago at an all-hands meeting, our company owner/CEO announced that we were being acquired by Clever Signs, which has been a local competitor and sometimes-collaborator for the past two decades. And now that shop, started in 2005, is buying out a 57-year-old company known throughout the region.

Estea Sign is not in trouble. In fact, the announcement said something like, “The acquisition is intended to leverage the strengths of both companies,” so I’m not sure why this is necessary or even happening. The meeting featured a lot of mambo-jumbo about contribution margins and stuff like that. I never thought our owner — a third-generation, dyed-in-the-wool sign guy — would sell out. And to Clever Signs!

I don’t know how many times this morning I’ve thought about that scene in The Godfather where Michael Corleone tells Mo Green that “the family” is buying him out. “You don’t buy me out!” Mo Green shouts as he’s being ushered out of the hotel room. “I buy you out!” Anyway, it didn’t work out too well in the end for Mo, I guess. Maybe we’ll do better.

We’ve been informed that jobs with the new company will be offered to all Estea Sign employees, myself included, which is a relief, but still leaves me worrying how things are going to change, how we’ll have to do things differently. Their way, maybe not as good as our way.

I’ve spent years honing a system for the designers working under me and it works under any benchmark, KPI or whatever you wanna judge it by. And I know it’s not the same way Clever Signs’ art department works. I’m acquainted with my counterpart there — maybe now my boss? So what’s that gonna mean?

Once in a while an employee of ours would take a job there or one of theirs would move here. It didn’t happen often, but when it did it’s not like those people — either way — could just step right in.

And they’re changing the company name. The companies’ name — to Clever-Estea Signs. Clever Signs’ art department has already presented the new logo and mockups of the new signage for both locations. Yeah, it’s good but I might have liked to be in on that.

We live in the real world and things change. I get it. Maybe this will work out just fine. Who knows? But that’s sort of where I am right now.

The meeting with my new boss, Clever Signs’ owner, is tomorrow morning at 9:30. Al, who manages fab, is right before me and Micah, our install manager, is just after. I guess by this time tomorrow all three of us will have a detailed idea about the transition and the new ways things are going to be done around here.

I hope they’re willing to consider our ways of doing things and are not going to be the kind that constantly looks over my shoulder.

It’s almost lunchtime but the last thing I am is hungry. What I’d love to do is spin around in my chair one time and have it be 9:30 tomorrow morning…

Kevin B.
Fort Collins, CO

I’ve been a design employee at a company that was sold to inexperienced investors and a company that merged with a much larger one. I’d say to employees that you vote with your feet and you get to decide who you work for. If your gut says “oh no” then start the job hunt immediately. I’d tell the new owners to go above and beyond with welcoming the new staff to the new company, with swift onboarding, multiple get-to-know-you events and a readily available person to deal with transition issues. There will be festering discontent as this is not the company anyone chose to work for, and the only remedy is active listening and rapid response from decision makers.

Bobby L.
DuBois, PA and Scranton, PA

I can speak from the new owner’s perspective. I purchased a second sign company. I think it is only natural for employees to be nervous about a new owner. With new owners/managers come new ways of doing things. But only time will tell if you are going to like the new way of doing things so don’t leave before giving it a fair chance. There were eight employees at the company when I bought it. We are in our fifth year under my ownership. Five of the employees from the previous owner are still with the company today.

The new way of doing things, under the new owner, won’t be right for everyone. But you won’t know until and unless you give it a try.

Wendy A.
Austin, TX

My previous company went from a “large” Texas sign company to being acquired by a national company. The introduction was soundbites: “similar cultures,” “same ethics.” In my case it was purchased by a company that did not understand our market, our process or what our customers came to expect. Many things that we did daily were processes the corporation had never done nor considered, [and had] simply outsourced. It was a lot of bending, learning and waiting.

The company begins to eliminate what have become redundant roles, departments and starts “streamlining” in efforts to save money, with a goal of recouping the initial purchase cost within the first three years. Did it build a better mousetrap, or just a bigger one?

In the end you will either be there or not. Expect the best and prepare for the worst. Update your resume, LinkedIn and contacts. Stay in touch with other industry professionals and keep an open mind to options.

I left — best move ever! I guess it offered me an opportunity after all.

Gardner W.
Lenexa, KS

Simple response to any “merger” whether it’s a sign company or big corporation: 1 + 1 does not equal 2.

The acquiring company will find the ‘best employees’ for each particular position. In the newly formed merged company [they will] weed out some of their non-performers on both ends, but mainly towards the acquired company, ’cause let’s face it: They have less loyalty towards them… and then move on. It’s as old as time. Always happens. Always.

Fred H.
St. Louis

It’s a scenario as old as time. What I’ve discovered through some big changes and two new jobs in the last five years: You can’t expect to make changes to another organization without first living in the organization. Starting new somewhere, even if you’re hired for your expertise, you have to fully understand the system in place before you can even start to introduce change. Frankly, if your system was as good as you think, the shoe would be on the other foot.

Evaluate first, understand the reasoning behind the system. Then maybe you can affect change by showing solid logic for your proposal. It’s never good to come in acting like your way is best when you are being offered a position with a new company. All that proves is you’re a problem. And individuals can ruin teams very quickly. So it’s important to identify people who are spoiling the broth and eliminate them before your whole team sinks.

Robert B.
Oakdale, CT

I have been through this long ago. In fact, it is why I am now a sign guy.

I worked for a major power-tool manufacturer as the clerk in the service/repair department. As such I had full access to the company’s computer files and financial info.

When the takeover was announced, all employees were told everything would be better and no one was going to lose their jobs. In the following weeks I was asked to provide several reports about financials, clients and even payroll. I brought it up with our old CEO and was told they didn’t want to add to accounting work and everything was fine.

Two weeks later heads rolled, starting with our CEO followed by me. Within four weeks of the takeover the staff was cut by over half. Six months later the operation was moved out of state and the rest of the employees that didn’t want to move were let go. Only four people made the move. It seems this is the way of any corporate takeover.