A fully integrated company needs an effective decision-making structure that can manage decisions, coordinate work streams, and establish the pace. This should be managed by a highly experienced individual with strong leadership skills and processes. Perhaps a rising star in the new company or a former leader from one the acquired companies. The person chosen to fill this position must be able to devote 90% of his or her time to this task.
Inadequate communication and coordination hinders integration and prevent the combined entity from achieving accelerated financial results. The financial markets anticipate significant and early signs of value capture, and employees might interpret the delay in integration as a sign of instability.
In the meantime the core business should remain the priority. Many acquisitions bring with them revenue synergies that require significant coordination between business units. For instance, a long-standing consumer products firm that was restricted to only a few distribution channels could join forces with or buy a company with different channels in order to gain access to new customer segments.
A merger can also divert managers from their work by absorbing https://reising-finanz.de/why-is-ma-integration-increasingly-critical-for-every-company-or-organization/ too much attention and energy. The business suffers. Then, a merger or acquisition could fail to address cultural issues – one of the most important factors in employee engagement. This could lead to problems with retention of employees and the loss of key customers.
To minimize these risks, clearly articulate the non-financial and financial results that are expected from the transaction and when. Then, delegate these objectives to the individual integration taskforces to drive momentum and deliver one integrated company in time.
