M&A Integration Processes and Issues
A fundamental rule in M&A is to not destroy value, which is why you need to take the time to create your processes and plan carefully to deal with the possibility of things going wrong. I’ve noticed that the most common problems are relating to people – how they react to changes or change, how they resist it and what they do if things don’t go as planned.
We help our clients set up the system that will allow them to spot issues early and respond quickly. This can be achieved by holding a weekly IMO meeting and working streams to monitor the progress of the process and escalate issues and risks to the SteerCo.
When the strategy for dealing with problems is established It’s important to concentrate on execution. It’s important to https://reising-finanz.de/ make sure that the team members know what they’re expected to do and how they’ll be evaluated, and the time frame for when. It also includes clearly defining accountability (i.e. ownership of the end results) and the authority to make decisions for the entire integrated business.
It is crucial that the CEO and top managers are able to spend at minimum 90 percent of their time focused in the core areas and not be distracted by integration activities. A good way to do this is to choose an experienced leader to oversee the Decision Management Office (IMO) that can make decisions and manage the work streams. This person could be from the acquired organization or an emerging star within the merged company who has the support of their boss to fulfill this commitment.