Risks of Mergers and Acquisition Integration

A fully integrated company needs an efficient decision-making system to triage decisions, coordinate work streams, and establish the pace. This should be managed by a highly skilled individual with strong leadership and process skills. Perhaps a rising star within the new organization, or a former executive from one of versicherungsberater the acquired firms. The person chosen for this job will have to be able to dedicate 90 percent of his or his or her time to this job.

A lack of communication and coordination can slow down the integration and prevent the combined entity of speedier financial results. Markets expect significant and early signs of value capture, and employees might see delays in integration as an indication of instability.

In the interim, the core business must remain the main focus. Many acquisitions can create revenue synergies that require coordination among business units. For example, an established consumer products company who was limited to a handful of distribution channels could merge with or buy a company with different channels in order to gain access to new segments of customers.

A merger can also distract managers from their jobs because it consumes too much attention and energy. The business suffers as result. A merger or acquisition could not be able to address the culture issues that are vital to employee engagement. This can lead to talent retention problems and the loss of important customers.

To reduce the risk of these, you should clearly state the financial and non-financial results that are expected and when they will occur. To ensure that the integration taskforces are able to move forward and meet their goals on time it is crucial to assign these objectives to each.