M&A Integration Processes and Issues

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In M&A it is essential to avoid damaging the value of the deal. It is therefore important to take time to plan and develop your processes. In my experience, the most prevalent issues are around people – how they react to changes and their reluctance, and how they react when something doesn’t go as planned.

One of the main services we offer our clients is helping them set an approach which allows them to spot possible issues early and then respond quickly. This can be achieved by holding weekly IMO meeting and working streams to evaluate progress and escalate issues and risks to SteerCo.

Once the procedure for addressing issues has been established, it’s crucial to focus on implementation. It is crucial to ensure that everyone knows what they’re expected to do and how they’ll be evaluated, and when. It also requires clearly publishing accountability (i.e. taking responsibility for the final results) and the authority to make decisions for the entire integrated company.

It is crucial to ensure that the CEO and senior management can spend at minimum 90 percent of their time on essential business issues and not be distracted by integration tasks. One method to achieve this is to choose an experienced leader to head the Decision Management Office (IMO) who will be able to triage decisions and manage the work streams. This person can come from the acquiring company or be a rising star in the newly merged company who has the support of their boss.