M&A Integration Processes and Issues

The most important rule in M&A is to avoid destroying value, therefore you need to spend the time to develop your processes and prepare for the event that something goes wrong. My experience has shown that the most common problems are about people – how they react to changes, their resistance to it and how they respond when something doesn’t work as was planned.

We help our clients set up an organization that allows them to recognize potential issues early and quickly respond. This can be done by having a weekly IMO meeting and functional work streams to assess the progress of the process and escalate issues and risks to the SteerCo.

Once the procedure for tackling issues is established It’s important to concentrate on the execution. It’s important to make sure that the team members know what they’re expected to do and how they’ll be evaluated, and how often. It’s also about clearly defining accountability (i.e. ownership of the final results) and the authority to make decisions for the entire integrated business.

It is essential to ensure that the CEO and senior management are able https://reising-finanz.de/so-waehlen-sie-den-besten-versicherungsberater-mit-bedacht-aus/ to spend at 90% of their time on core business concerns and not get distracted by integration tasks. One way to accomplish this is to select an experienced leader to oversee the Decision Management Office (IMO) which will help triage the decisions and coordinate the work streams. This person could be from the acquiring organization or a rising star within the newly formed company who has the backing of their boss who is willing to make this commitment.