Governance post-SMB Acquisition

Today's #eta thread is about governance, specifically around sustainable governance structures for #smb.

Here are 5 ways searchers can implement best practices while also accounting for how different these companies are from their larger counterparts:

1. Establish a board - even with small deals, a board of directors can offer rich insights and act as a stabilizing force for long-term growth. This creates deeper accountability than looser investor check-ins or less-involved peer groups

2. Facilitate communication and stakeholder inclusion: incorporating diverse stakeholder perspectives in the governance process and then establish clear strategies and norms around communication, conflict resolution, and crisis management.

3. Align a new board around the prior team's values to preserve continuity: early on, it can be critical to identify and preserve the fundamental values that have steered the small business to success, while making any needed adjustments.

4. Use technology to foster compliance and reporting: SaaS solutions for boards often include features that assist in meeting regulatory compliance and reporting requirements. They can help in maintaining necessary records, tracking decisions, and generating reports.

5. Continued due diligence: conduct rigorous diligence on prospective investors and board members, evaluating their track records, industry reputation, and adherence to legal and ethical standards, to mitigate potential risks and uphold business integrity.