An integrated business requires a solid decision-making structure in order to sort out decisions, organize work streams, and establish the pace. This should be led by a highly skilled individual with strong leadership skills and process–perhaps an emerging star in the new organization or a former leader from one of the acquired companies. The person who is chosen for this job should be able to commit 90 percent of his or their time to this role.
Insufficient communication and coordination can slow the process of integration and prevent the combined entity of speedier financial results. Financial markets expect significant and early signs of value capture, and employees may see delays in integration as a sign of instability.
In the meantime, the primary business must be a priority. A lot of acquisitions result in the possibility of revenue synergies. These can require a significant coordination between business units. For example, an established consumer products firm that was restricted to only a few distribution channels may merge with or acquire a company that uses different channels to gain access to new segments of customers.
A merger could also distract managers from their business because it consumes too much energy and attention. In the end, the business suffers. Finally, a merger or acquisition https://reising-finanz.de/finanzversicherung/ might not be able to solve the cultural issues that are one of the most important factors in employee engagement. This could lead to problems with retention of talent as well as the loss of customers who are important to you.
To minimize these risks, clearly articulate the financial and non-financial benefits that are expected from the transaction and when. To ensure that the taskforces for integration are able to progress and achieve their goals in time it is essential to assign these goals to each.