A well-integrated company requires a solid decision-making structure in order to make decisions, coordinate work streams and set the pace. The structure should be led by a highly experienced individual with strong leadership skills and a process, possibly a rising star in the new organization, or a former leader of one of the acquired companies. Ideally, the person selected for this role should be able to dedicate 90% of their time to the task.
Lack of communication and coordination could hinder the integration process and rob the combined entity of faster financial results. Financial markets expect early, substantial signs of value capture. Employees may https://reising-finanz.de/why-is-ma-integration-increasingly-critical-for-every-company-or-organization/ consider a delay to be an indication that the company is in a state of instability.
In the interim the core business needs to remain the main focus. Many acquisitions create revenue synergies, which can require a significant coordination between business units. For instance, a consumer product company that was confined to a few distribution channels could combine with or buy one that operates on different channels and gain access to previously untapped customer segments.
Another issue is that a merger may soak up too much of the company’s attention and energy, distracting managers from the business. This means that the business is harmed. In the end, a merger or acquisition might not be able to address cultural issues – an important factor in employee engagement. This can cause problems with retention of employees as well as the loss of customers who are important to you.
To avoid these risks, you must clearly define the financial and non-financial outcomes that are expected and when they will occur. To ensure that the taskforces for integration are able to move forward and achieve their goals on time it is crucial to assign these objectives to each.