Successful integration is the key to avoiding the risks of a merger or acquisition. Although no two corporate acquisitions should be integrated in the same way, with the same priorities, or under exactly the same timetable, there are key strategies that an acquiring company can implement to make the phase more manageable and lead to the desired outcome.
Appoint a Strong Integration Leadership Team
A corporate acquisition needs a strong leader that has the authority to make triage decisions, coordinate taskforces and set the pace. The individual chosen should be strong on strategy and content as well as processes. Ideally, this individual and other taskforce leaders will spend about 90 percent of his or her time on the integration.
The most effective post merger integration leaders lay out a decision roadmap and manage the organization of tasks to ensure that each decision is made by the appropriate personnel at the right time using the best available information.
The post merger integration leadership team should first identify the financial and non-financial results they are accountable for and in what timeframe, helping to determine the key decisions that must be made in order to achieve prioritized results.
Select Company Culture
Every organization has its own set of norms, values and assumptions governing how employee behavior and interactions. One of the biggest challenges of nearly every corporate acquisition or merger is determining what to do about company culture.
One approach is to perform a diagnostic evaluation that reveals the gaps between the two merging company cultures. Commit to one culture you want to see emerge from the integration then discuss and model it before implementation.
Retain Top Talent
Until you announce the appointments, your best employees could be poached by your competitors during the transition period or they may begin the job hunting process. Expediting the restructuring process helps to prevent the loss of top talent.
A successful and profitable corporate acquisition often revolves around the strategic integration of the companies involved. Preventing personnel issues such as loss of key staff and widening culture gaps should be a top priority.
For more valuable information about actuating a smooth corporate acquisition, visit Proformative.com, a free, open and independent community of corporate finance, accounting, treasury and related professional interested in finding professional resources, sharing knowledge, and getting work done. Learn from finance experts and get involved in Proformative's finance, accounting and treasury-related groups and forums today.
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Heather Preston Post Merger Integration - Do you have a question about post merger integration? Learn from your peers and other professionals by getting involved in Proformative.com's finance, accounting and treasury-related groups and forums.
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