A well-integrated company requires a solid decision-making structure in order to make decisions, coordinate work streams and set the pace. The structure should be led by a highly skilled individual with strong leadership capabilities and processes, perhaps an emerging star within the new organization or a former leader from one the acquired companies. The person who is chosen for this role should be able to commit 90 percent of his or their time to the task at hand.
Lack of communication and coordination will hinder the integration process and prevent the new entity of accelerating financial results. The financial markets anticipate significant and early signs of value capture, and employees may take a delay in integration as an indication of instability.
In the interim, the core business must remain the top priority. A variety of acquisitions can result in revenue synergies that require coordination among business units. For example, a consumer product company that was confined to a few distribution channels could join or acquire an organization that utilizes various channels and gain access to untapped consumer segments.
Another issue is that a merger may take up too much of the attention and energy of a company, distracting managers from the business. The business suffers as a result. A merger or acquisition may not address the cultural issues that are critical to employee engagement. This can lead both to problems with retention of talent as well as the loss of important customers.
To avoid these risks you must clearly state what financial and non-financial outcomes are expected and by when. Next, you must assign these goals to the various taskforces involved in the integration process to ensure that they are able to achieve their goals and deliver a single integrated company on schedule.
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