What we look for right away is where do all of their expenses go, so we can get them streamlined into the right department and operating the same as the other stores. We’re not going to change 9 systems, we’re going to change one. “Either way, we need to go into the acquired dealership’s accounting system and adapt it to ours. We’ll see if we can somehow shift them to parts or administration as best we can. “If I have 3 accountants already, I probably don’t need another one. “We are not building a profitable company by letting go of good people, but I am not going to lie to someone either,” Olson says. Plains Ag’s regional accountants also oversee financial operations at multiple stores, and this is one personnel area where Olson has had to deal with redundancies. Olson acknowledges that nobody likes learning a new computer system, but each store has an in-house regional accountant and the various directors to get employees trained and comfortable from day one. The most radical changes might be streamlining parts ordering to be consistent with Plains Ag’s overall process and adapting the acquired dealership’s business management system to the DIS system used by Plains Ag. Department directors from sales, parts and service dissect the operational practices for each area of the acquired dealership and assess what’s working and what isn’t.įor example, if an acquired store has a profitable and efficient parts department, there is very little tinkering that Olson and management will do on the personnel side. Who has what strengths? Who has what weaknesses? I’ve come to the conclusion that very few people want to sell their dealership because they’re having too much fun or making too much money.”įrom a continuity standpoint, Olson prefers to be honest with employees from the outset as to why and how changes will be made. “We’ve crunched the numbers and know the business. “That first month is the honeymoon period, but I really try to figure out who we are getting during that time,” Olson says. This includes one-on-one sessions with employees in each department to set expectations, but also see if there is unrealized potential that can be tapped.
One of the first objectives for Olson and Plains Ag’s management is to evaluate the capabilities and ambition of employees from the acquired dealership. and Northern Plains EquipmentĢ014 - Completes merger with Northern Plains Equipment in Mandan, N.D.Ģ015 - Acquires Magic City Implement in Minot, N.D.Ģ016 - Acquires Rensch Farm Store and Lakeside Equipment in Garrison, N.D. I need to communicate the fact that from the outset, we’re just trying to build a better business and we want everyone to be a part of that.”Ģ002 - Started Frontier Equipment in Williston, N.D.Ģ004 - Acquires Markle Implement in Glasgow, Mont.Ģ008 - Acquires 4-store West Plains Inc., with locations in Beach, Bowman, Dickinson, and Hettinger, N.D.Ģ013 - Acquires Stanley Equipment in Stanley, N.D.Ģ013 - Plains Ag formalizes regional dealership concept that becomes Border Plains Equipment, West Plains Inc. “That comfort and familiarity is gone and all of the sudden someone else is taking over. “There’s always an initial fear whenever you are the one getting purchased, like someone has control of me now,” Olson says. Olson readily admits that despite a history of successful purchases, there’s always room for improvement when integrating cultures, employees and business strategies once the ink dries and the clock starts ticking on the first 100 days after an acquisition. This transitional scenario is one that Olson has navigated numerous times during the 10-store dealership’s 9 acquisitions in the last 12 years (the most recent completed in March of this year).īut practice doesn’t necessarily make perfect. I want to field the questions and I’m fine if they get a little upset or kind of fight me because that let’s me know they care.” But I don’t want 6 or 10 of the quietest people. “I like having smaller groups, otherwise nobody will say anything but me. “Once we close a deal, I’m usually the one who goes in front of the acquired dealership’s employees with the previous owner to make the announcement,” says Olson.
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