An acquisition can be a potent strategic tool for increasing market share, increasing capability or leapfrogging competitors through using cost efficiency. Many acquirers fail to fully integrate their new ventures into the company. This can have long-term negative impacts. This article shares critical factors that can be successful in merger acquisition integration (PMI) that can ensure a smooth and effective integration.
PMI should start with an eloquent and concise definition that converts the “why” of a deal into quantifiable integration goals and a specific plan(s) for each functional area, such as cost- and revenue-related synergies. PMI must also take into consideration the cultural fit between the acquirer and the company in question as and the nuances that are inherent in each deal’s unique circumstances.
A major point of focus during PMI is ensuring that the CEOs of both firms dedicate the majority of their time to their core businesses and place a high priority on customer/stakeholder engagement. Hess suggests that in order to achieve this, employees must identify the problem solvers and thought leaders on the target company’s team and assign them to an taskforce for integration. These senior leaders can ease stress and boost morale/buy in by showing the acquired organization their commitment to leadership.
While playbooks are not ideal for the fluctuating/irregular http://www.virtualdataroomservices.info world of M&A, a basic framework and game plan can be helpful. Visit our resources page for free and download the integration checklist.
