An integrated company requires an effective decision-making structure that can manage decisions, coordinate work streams and set the pace. This should be led by a highly skilled person with strong leadership capabilities and process–perhaps an emerging star in the new organization or a previous leader from one of the acquired companies. The person selected to fill this position must be able to devote 90 percent of his or their time to the task at hand.
Inadequate communication and coordination could slow integration and hinder the combined entity from achieving rapid financial results. Financial markets are expecting significant and early signs of value capture, and employees could see an inability to integrate as an indication of instability.
In the meantime, the primary business should remain a top priority. Many acquisitions bring with them revenue synergies that require significant coordination between business units. For instance, a long-standing consumer products firm that was limited to a small number of distribution channels might merge with or purchase a business with different channels in order to gain access to new segments of customers.
A merger can also distract managers from their jobs by absorbing too much energy and attention. The business is harmed. Additionally, a merger acquisition could fail to address issues with culture – an important factor in employee engagement. This can result in issues with retention of talent and the loss of customers who are important to you.
To minimize these risks To avoid these risks, clearly state the financial and non-financial outcomes that are expected from the deal and by when. To ensure that the taskforces for integration are visit here able to move forward and meet their goals in time it is crucial to assign these objectives to each.