M&A Integration Processes and Issues

The principle of M&A is to avoid destroying value, so 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 frequent issues are people-related – how they react to change or change, how they resist it, and what they do if things don’t go according to plan.

We assist our clients in setting up an effective system that allows them to identify potential issues early and quickly respond. This could be for instance, having weekly meetings where the IMO and functional work streams examine the progress made against the plan and raise concerns and risks to the SteerCo.

When the strategy for dealing with issues is in place It’s crucial to concentrate on the execution. This means that everyone knows what they’re required to achieve and how it will be measured, and by when. It also includes clearly publishing accountability (i.e. the ownership of the useful content final results) and decision-making authority for the entire integrated company.

It is vital that the CEO and top managers are able spend at least 90 percent of their time in the core areas and not be distracted by integration activities. It is a good idea to appoint a leader who can manage the Decision Management Office and coordinate work streams. This person could be from the acquired company or be a rising star within the merged company with the support of their boss.

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