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Steve Feldshuh

“Talk To Steve”

Merger mania, oh how it can hurt

By Steven Feldshuh
Merchants' Choice Payment Solutions East
fter reading through recent postings on GS Acquisition jitters
Online's MLS Forum, I saw there are real In "Don't let acquisitions catch you off guard," The Green Sheet, Jan. 18,
concerns regarding all the large processor 2018, issue 18:01:01, Jeff Fortney wrote, "It can be said that everyone
A mergers that have been taking place. The in the industry is impacted by an acquisition, directly or indirectly. The
concept of bigger is better has once again been in the
forefront of our industry. I agree that merchant level impact may be felt immediately at the time of close, or it could fol-
salespeople (MLSs), also known as independent sales low a few months later. The biggest concern I hear whenever a sale is
agents (ISAs), should be concerned on many levels. announced can be summed up in one word: fear. I hear comments like
the following: Is the ISO channel dying? They only mention ISV. What
In following just one story, the Vantiv/Worldpay merger, can I do to protect myself?"
I was able to pick up concerns that we all face when our
processing entity is purchased or ends up purchasing Fortney emphasized the need to address fear head on, so you can pre-
another company. My own processor was recently pare and take any necessary steps to protect your bottom line in the
purchased by a larger entity called Paysafe. Though the event a company you work with is involved in a merger or acquisition.
intentions of a purchase or merger are generally good, He advised doing thorough research on potential partners, as well.
there is always some fallout in managing the integration of "[F]ind out where a prospective partner falls in the payments value
the companies, and dealing with differences in company chain," he wrote. "Is the business a true processor or an ISO? If it's an
cultures. Fortunately, in the case of MCPS Corporate ISO, what company does it use for processing? Ask questions about
becoming a part of Paysafe, the MCPS entity remained future plans so you don't have to look for another partner in a year or
pretty much intact, and the combined companies initially two."
seem to be working very well together.
He also reminded readers that "change does not need to be negative.
Tough questions arise It can represent an opportunity to help you reach your goals."
But what happens when the cultures clash or the The full article is in our archives at www.greensheet.com/emagazine.
sponsoring banks change? What happens to a sales office's php?story_id=5590&search_string=acquisition.
customer service and technical support? Obviously,
public companies look to save on the bottom line, so
whose customer service department gets the axe? And
whose call center is terminated? How many tech support the new, combined headquarters move to the acquirer's
people and client service reps lose their positions? Maybe current location, and the location of the acquired entity
closes down. How does a company that relies on a salaried

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