A fully integrated company needs a strong decision-making structure to sort out decisions, organize work streams, and establish the pace. The structure should be led by a highly skilled person with an excellent management and process ability. Perhaps a rising star within the new organization or an executive from one of the acquired firms. The person selected for this position must be able to devote 90% of his or their time to this role.
Insufficient communication and coordination can delay the integration and rob the new entity of accelerating financial results. Markets are expecting early, substantial indicators of value capture. Employees may consider a delay to be an indication that the business is unstable.
In the meantime, the core business must be a priority. Many acquisitions can create revenue synergies, which require coordination between business units. For instance, a consumer products company that is restricted to a specific distribution channel could combine with or buy one that operates on various channels and gain access into untapped customer segments.
A merger may also distract managers from their work by taking up too much energy and attention. The company suffers as a result. A merger or acquisition may not address the cultural issues that are essential to employee engagement. This can lead both to problems with talent retention and the loss of key customers.
To avoid these risks, you must clearly state what financial and non-financial outcomes are expected and when they will occur. To ensure that the integration taskforces are https://reising-finanz.de/choosing-the-right-personal-property-insurance/ able to progress and meet their goals within the timeframe it is essential to assign these goals to each.