A fully integrated company needs a solid decision-making structure in order to triage decisions, coordinate work streams and set the pace. This should be supervised by a highly skilled individual with strong leadership capabilities and processes. Perhaps a rising star in the new organization, or a former leader of one of the acquired companies. The person selected for this position must be able dedicate 90% of his or his or her time to this job.
Lack of coordination and communication could slow integration and stop the combined entity from achieving quicker financial results. Markets expect early, significant signs of value capture. Employees might consider a delay to be an indication that the company is unstable.
In the meantime, the primary business must be a priority. Many acquisitions bring with them the possibility of revenue synergies. These can require a lot of coordination between business units. For instance, a well-established consumer goods company that was restricted to only a few distribution channels could merge with or purchase a company using different channels to gain access to new customer segments.
Another risk is that a merger may absorb too much of a company’s energy and attention and distract managers from the business. In the end, the business is harmed. A merger or acquisition could not address the cultural issues https://reising-finanz.de/so-waehlen-sie-den-besten-versicherungsberater-mit-bedacht-aus/ that are critical to employee engagement. This can lead to issues with retention of talent and the loss of key customers.
To avoid these risks, you must clearly define the financial and non-financial results that are expected and by when. Then, delegate these goals to each of the taskforces involved in the integration process to ensure that they are able to achieve their goals and deliver a single integrated company on time.
