A strong decision-making system is needed to make decisions, coordinate work streams, and set the pace for a fully integrated company. The structure should be led by a highly skilled person with a strong leadership capability and a process, possibly an emerging star in the new company or a former leader of one of the acquired companies. The person who is chosen to fill this position should be able to commit 90 percent of their time to the task at hand.
Insufficient communication and coordination can slow down the integration and deprive the new entity of accelerating financial results. The financial markets anticipate significant and early signs of value capture, and employees may see an inability to integrate as http://reising-finanz.de/different-types-of-mortgage-rates a sign of instability.
In the meantime, the business of base must be kept in the forefront. A variety of acquisitions can result in revenue synergies and require coordination between business units. For example, a consumer product company that was confined to a few distribution channels could join with or acquire one that operates on various channels and gain access to untapped consumer segments.
Another risk is that a merger can take up too much of the company’s attention and energy that can divert managers away from the business. The business suffers as result. A merger or acquisition could not be able to address the culture issues that are crucial for employee engagement. This can cause problems with retention of talent as well as the loss of important customers.
To reduce the risk of these, you must clearly identify what financial and non-financial outcomes are expected and by when. To ensure that the integration taskforces are able to move forward and achieve their goals within the timeframe it is crucial to assign these goals to each.
