M&A Integration Processes and Issues
In M&A It is essential to ensure that you don’t devalue the value of the deal. You must therefore spend time planning and create your process. I’ve noticed that the most prevalent problems are relating to people – how they respond to change and how they resist it and what they do if things don’t go as planned.
One of the main services we offer our clients is to help them set an approach that will allow them to identify potential issues early and react quickly to them. This can be achieved by having weekly IMO meeting as well as functional work streams to review the progress made and escalate issues and risks to the SteerCo.
When the strategy for dealing with problems is established It’s essential to focus on execution. It’s essential to ensure that the team understands what is expected of them, how they will be evaluated and when. It’s also about clearly defining accountability (i.e. ownership discover this of the final results) and the decision-making authority for the whole integrated business.
It is vital that the CEO and top managers can devote at least 90 percent of their time focused on core matters and not be distracted by integration activities. It’s a good idea to appoint an executive who will manage the Decision Management Office and coordinate work streams. This can be someone from the acquiring organization, or it can be a rising star within the newly formed company who has the backing of their boss to make this commitment.