A fully integrated company needs an efficient decision-making system to sort out decisions, organize work streams and set the pace. This should be supervised by a highly experienced individual who has a solid leadership background and processes, perhaps an emerging star within the new organization or perhaps a previous leader from one of the acquired companies. The person selected for this job will have to be able to dedicate 90 percent of her time to this task.
Insufficient communication and coordination can slow down the integration and deny the combined entity of faster financial results. Financial markets anticipate early, substantial signs of value capture. Employees might interpret a delay as an indication that the company is in a state of instability.
In the meantime the https://reising-finanz.de/finanzversicherung/ core business has to remain the priority. Many acquisitions can create revenue synergies and require coordination between business units. For instance, a customer products company that is restricted to a certain distribution channel might combine with or buy a company that uses different channels and gain access to untapped consumer segments.
Another issue is that a merger could take up too much of the company’s attention and energy, distracting managers from the business. The company is harmed. Then, a merger or acquisition may not solve the cultural issues that are a key factor in employee engagement. This can result in talent retention problems and the loss of key customers.
To avoid these risks you should clearly state the financial and non-financial results that are expected and by when. To ensure that the taskforces for integration are able to move forward and meet their goals on time it is crucial to assign these goals to each of them.