A strong decision-making framework is required to make the right decisions, coordinate work streams, and set the stage for a fully integrated company. This should be helmed by a highly skilled individual with excellent leadership and process expertise. Perhaps a rising star within the new organization, or a former executive from one of the acquired companies. Ideally, the person selected to fill this position must be able and Web Site willing to commit 90% of their time to this task.
Insufficient communication and coordination could slow down the integration and deny the combined entity of faster financial results. Financial markets anticipate early, substantial indicators of value capture. Employees might consider a delay to be an indication that the company is in a state of instability.
In the interim, the core business must remain the priority. Many acquisitions can bring revenue synergies that require coordination among business units. For example, an established consumer products firm that was limited to a handful of distribution channels might merge with or buy a company with different channels in order to gain access to new segments of customers.
Another danger is that a merger can absorb too much of the attention and energy of a business which can distract managers from their business. The company is harmed. Finally, a merger or acquisition may not tackle cultural issues – one of the most important factors in employee engagement. This can cause issues with retention of talent and the loss of important customers.
To minimize the risk to avoid these risks, clearly define the financial and non-financial benefits that are expected from the deal and by when. To ensure that the integration taskforces are able to progress and meet their objectives on time it is essential to assign these objectives to each of them.
