Strategies for Successful Integration of your Acquisition Part 2

May 21st, 2012

First 100 days

  • Implement a tracking program to determine how critical functions are performing within the new company
  • Develop a process for identifying process improvements

Process improvements

  • If time allows, consider letting both companies run independently to identify best practices
  • Evaluate differences between the two companies and what can be adopted into the new company

There are several common issues that often derail mergers, including a lack of planning, underestimating the scope of the initiative and failure to communicate. These issues can become apparent within any facet of integration, and can result in inefficiency during the process and an increase in costs involved.

Cultural considerations are also often underestimated in a merger environment, and it cannot be assumed that synergies are going to be achieved quickly. What the merger is going to mean to the people involved such as employees, customers and vendors, tends to be overlooked and can be a significant concern, if not addressed proactively.

Management must be upfront in communicating the goals for the merger as well as how business processes will change in the combined company.

Concerns regarding topics such as relocation, the shifting of job roles and any new tools or software that will need to be learned are often prevalent in a merger environment.

The fear of the unknown can be very real for those affected by the merger, and it can have a significant effect on productivity.

To achieve successful merger integration, many companies turn to a third party or if they are active acquirers have an internal “Integration Task Force” to help implement strategic plans and track progress toward goals. Your internal employees have a day job and it is difficult for them to dedicate the time that is necessary to manage such an important endeavor.

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