M&A Integration Processes and Issues

In M&A, it is important to avoid destroying the value of the deal. It is therefore important to take time to plan and develop your processes. My experience has shown that the most frequent issues are around people – how they respond to change, their resistance to it and how they respond when something doesn’t work as intended.

One https://reising-finanz.de/finanzversicherung/ of the most important tasks we provide to our clients is to help them set up a procedure which allows them to spot possible issues early and react quickly to them. This could be, for example, having weekly meetings where the IMO and functional work streams examine progress against the plan, and escalate risks and issues to SteerCo.

Once the procedure for tackling issues is in place It’s essential to focus on execution. It is crucial to ensure that the team understands what is expected of them, how they will be evaluated, and how often. It also means clearly stating accountability (i.e. taking ownership of the final results) and the authority to make decisions for the entire integrated company.

It’s essential to ensure that the CEO as well as senior management can devote at least 90 percent of their time on core business matters and avoid being distracted by integration tasks. It is best to designate a leader who can manage the Decision Management Office and coordinate work streams. This can be someone from the acquisition company, or it can be a rising star within the merging business that has the backing of their boss who is willing to make this commitment.