An integrated business requires an efficient decision-making system to make decisions, coordinate work streams, and establish the pace. This should be managed by a highly-skilled individual https://reising-finanz.de/ with an excellent management and process ability. Perhaps a rising star within the new company or a former executive from one of the acquired companies. The person chosen for this role should be able and willing to commit 90 percent of their time to this task.
A lack of communication and coordination could slow down the integration and prevent the combined entity of speedier financial results. Markets expect significant and early signs of value capture, and employees may interpret a delay in integration as an indication of instability.
In the meantime, the core business must be a priority. Many acquisitions provide revenue synergies, which can require a lot of coordination between business units. For instance, a reputable consumer products firm that was restricted to a few distribution channels could merge with or purchase a business that uses different channels to gain access to new segments of customers.
Another issue is that a merger might soak up too much of the attention and energy of a company which can distract managers from their business. The business suffers. Finally, a merger or acquisition might not be able to address issues with culture – an important factor in employee engagement. This can cause problems with retention of talent and the loss of important customers.
To avoid these risks to avoid these risks, clearly define the financial and non-financial outcomes that are expected from the deal and when. To ensure that the integration taskforces are able to move forward and meet their goals in time, it is important to assign these goals to each.
