Merger Integration

What could possibly go wrong?

You've bought a great company at a great price, and the deal synergies have been thoroughly vetted. You may have thought through the practical integration matters to be managed and optimized. When all is said and done, will you have realized the full potential of the transaction?

What should you do to make it go right?

With so much at stake, what can be done to avoid pitfalls, mitigate risks and maximize results? Here's a short list. 

1. Revalidate deal synergies. Have they been over- or under-estimated? Do you need to reset your expectations and targets? 

2. Make sure people know their role.  The people responsible for realizing synergies must understand and internalize what's being asked of them, articulate plans and commit to outcomes. 

3. Focus resources on the value drivers. With so much to be done, make sure to allocate sufficient resources to the areas that matter most.

4. Put the right governance in place. Form an Integration Steering Committee comprised of senior managers from both organizations and an Integration Management Office to coordinate activities.

5. Have a clear picture for Day 1. Clarify what's changing and what's not to ensure that the first day the new entity is integrated is a much or little of an event as you need it to be.

6. Communicate really well. Make sure that deal, due diligence and integration teams have aligned expectations, share the information needed to be successful and share the integration strategy broadly to all affected stakeholders. Initiate planning and decision-making well before the deal closes to ensure a smooth transition.

7. Channel resistance. Resistors give you insight into risks and issues. They can also become your greatest champions for change. Hear their concerns and take actions to address them.

8. Let business processes be your foundation for change. Be clear about changes to processes ownership, operating procedures and systems. Clarify the implications for organization structures and activities. Develop detailed integration plans and accountabilities.

9. Remember that "culture eats strategy for breakfast". Invest in understanding and addressing differences. Tangible areas to explore include values and beliefs, leadership styles, communication patterns, work environment, decision-making processes, performance and reward systems, attitudes toward customers and employee engagement. 

10. Check progress regularly and adjust course. Put the right tracking and reporting mechanisms in place. Review progress with the Integration Steering Committee and Integration Management Office. Make adjustments to strategy, objectives and goals. 

Guiding Principles

You may have alignment on what needs to be done. One of the most important investments you make is building consensus on how to do it. Well-laid plans often break down when there are fundamental disagreements in mindset. Guiding principles serve as guardrails for decision-making and behaviors that add an extra layer of assurance for success. These should be tailored to your specific situation, but here are a few of the most important considerations: 

1. Customers first: Change can be disruptive. Make sure to keep your customers happy and not upset client relationships or their business. When you do encounter problems, act swiftly to address them in ways that minimize the disruption.

2. Respect for people: Integrations can stir up a range of emotions. Treat people with respect and dignity, and be open, candid and timely in communications to minimize uncertainty.  

3. Balance speed to value:  Move with urgency while ensuring that short-term actions don't undermine the things that made you successful so far and will drive your success in future. 

Need help?

Putting all the puzzle pieces together isn't easy. We have the experience, frameworks and tools to help. Schedule an appointment to talk with us.