An integrated company requires a strong decision-making structure to triage decisions, coordinate work streams and set the pace. The structure should be led by a highly skilled professional who has a solid leadership background and a process, possibly a rising star within the new organization or a former leader of one of the acquired companies. The person chosen for this position should be able to dedicate 90% of their time to this job.
Lack of coordination and communication delays integration and hinder the combined entity from achieving accelerated financial results. Financial markets expect early, substantial indicators of value capture. Employees could consider a delay to be a sign that the company is unstable.
In the meantime, the core business should remain a top priority. A variety of acquisitions can result in revenue synergies that require coordination among business units. For instance, a customer product company that was confined to a few distribution channels could join with or acquire a company that uses various channels and gain access to previously untapped customer segments.
A merger could also distract managers from their business because it consumes too much energy and attention. The company suffers as result. 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 talent retention and the loss of customers who are important to you.
To minimize these risks to avoid these risks, clearly define the non-financial and financial results that are expected from the deal and by when. Next, you must assign these goals to the various taskforces that will be working on the integration to accelerate and ensure that one company is integrated according to schedule.
