A robust decision-making process is required to make the right decisions, coordinate work streams, and set the tone for a unified company. This should be led by a highly experienced individual with strong leadership skills and a process, possibly a rising star within the new organization, or a former leader of one of the acquired companies. The person chosen to fill this position must be able to dedicate 90 percent of their time to this task.
Inadequate communication and coordination hinders integration and prevent the merged entity from achieving accelerated financial results. Financial markets anticipate early, significant signs of value capture. Employees may interpret a delay as an indication that the business is in a state of instability.
In the meantime the core business should remain the priority. Many acquisitions can bring revenue synergies that require coordination among business units. For instance, a consumer products company that was restricted to a specific distribution channel could merge with or acquire companies that use different channels, and gain access to untapped customer segments.
A merger can also distract managers www.reising-finanz.de/choosing-the-right-personal-property-insurance/ from their jobs by taking up too much attention and energy. In the end, the company is harmed. Finally, a merger or acquisition might not be able to tackle cultural issues – which is a crucial factor in employee engagement. This can lead to talent retention problems and the loss of customers who are important to you.
To avoid these risks, you must clearly define what financial and non-financial outcomes are expected and when they will occur. To ensure that the integration taskforces are able to move forward and achieve their goals on time it is crucial to assign these goals to each of them.