A strong decision-making system is required to make the right decisions and coordinate work streams and set the stage for an integrated business. The structure should be led by a highly experienced individual with a strong leadership capability and process–perhaps www.reising-finanz.de/finanzversicherung/ a rising star within the new organization or perhaps a former leader of one of the acquired companies. The person selected for this job should be able to commit 90 percent of his or his or her time to this job.
Lack of communication and coordination hinders integration and hinder the combined entity from achieving rapid financial results. Financial markets are expecting early and substantial signs of value capture, and employees might take a delay in integration as a sign of instability.
In the meantime, the core business must be a priority. Many acquisitions can create revenue synergies and require coordination between business units. For instance, a well-established consumer products firm that was restricted to only a few distribution channels could merge with or purchase a business with different channels in order to gain access to new customer segments.
A merger may also distract managers from their work by absorbing too much energy and attention. The company suffers as result. In the end, a merger or acquisition may not solve the cultural issues that are an important factor in employee engagement. This can lead both to issues with retention of talent and the loss of customers who are important to you.
To minimize the risk be clear about the non-financial and financial results that are expected from the transaction and when. To ensure that the taskforces for integration are able to advance and achieve their objectives on time, it is important to assign these objectives to each.
