In M&A It is essential to avoid damaging the value of the deal. You must therefore spend time planning and develop your processes. I’ve observed that the most common problems are related to people – how they react to changes or change, how they resist it and what they do if things don’t go according to plan.
One of the primary things we do for our clients is to assist them in setting up a https://reising-finanz.de/why-is-ma-integration-increasingly-critical-for-every-company-or-organization/ procedure which allows them to spot possible issues early and address them promptly. This can be accomplished by having a weekly IMO meeting and functional work streams to monitor the progress made and escalate issues and risks to the SteerCo.
Once the procedure for solving issues has been established, it’s crucial to concentrate on implementing. It’s essential to ensure that everyone knows what they are expected to do and how they’ll be evaluated, and how often. It also includes clearly defining accountability (i.e. ownership of the final outcomes) and decision making authority for the whole integrated business.
It is essential to ensure that the CEO and senior management can spend at least 90 percent of their time working on core business concerns and avoid getting distracted by integration tasks. A great way to do this is to designate an experienced leader to head the Decision Management Office (IMO) which will help triage the decisions and coordinate the work streams. This could be a person from the acquiring organization, or it can be an emerging star within the newly formed company that has the backing of their boss to fulfill this commitment.