A robust decision-making process is essential to make decisions that coordinate work streams and set the stage for an integrated company. This should be led by a highly skilled professional who has a solid leadership background and process–perhaps a rising star within the new organization or perhaps a former leader from one the acquired companies. The person who is chosen for this role must be able to devote 90% of his or her time to this task.
Lack of communication and coordination could slow integration and hinder the combined entity from achieving accelerated financial results. The financial markets anticipate early and substantial signs of value capture, and employees may take a delay in integration as an indication of instability.
In the meantime, the core business must be a priority. Many acquisitions can bring revenue synergies that require coordination between business units. For example, a consumer product company that was confined to a specific distribution channel could join or acquire an organization that utilizes various channels and gain access into untapped customer segments.
Another risk is that a merger can absorb too much of the company’s attention and energy which can distract managers from their business. The company suffers as result. Then, a merger or acquisition can fail to solve the cultural issues that are a key factor in employee engagement. This can result in problems with talent retention and the loss of key customers.
To minimize the risk To avoid these risks, clearly state the financial and non-financial benefits that are expected from the deal and by when. Next, you must assign these goals to the various taskforces that will be working on the integration to accelerate and ensure that one browse around these guys company is integrated in time.