A robust decision-making process is required to make the right decisions, coordinate work streams, and set the tone for a fully integrated company. This should be managed by a highly skilled person with solid leadership and process abilities. Perhaps, a rising star within the new company, or a former executive from one of the acquired companies. Ideally, the person selected to fill this position must be able to dedicate 90% of their time to the task.

Inadequate communication and coordination hinders integration and stop the combined entity from achieving faster financial results. Financial markets are expecting early and substantial signs of value capture, and employees might take a delay in integration as an indication of instability.

In the interim the core business has to remain the main focus. Many acquisitions can generate revenue synergies, which require coordination between business units. For example, an established consumer products company who was restricted to a few distribution channels may merge with or purchase a company with different channels in order to gain access to new segments of customers.

Another issue is that a merger can consume too much of the company’s attention and energy, distracting managers from the business. The company suffers as result. A merger or acquisition may fail to address the cultural issues that are essential to employee engagement. This can lead both to problems with retention of www.reising-finanz.de/so-waehlen-sie-den-besten-versicherungsberater-mit-bedacht-aus/ talent as well as the loss of key customers.

To avoid these risks To avoid these risks, clearly state the financial and non-financial outcomes that are expected from the deal and by when. To ensure that the taskforces for integration are able to progress and achieve their objectives on time it is crucial to assign these objectives to each.