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M&A Integration Processes and Issues

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The principle of M&A is to avoid destroying value, so you need to take the time to build your processes and plan carefully for the eventuality that something goes wrong. I’ve observed that the most prevalent problems are related to people – how they react to changes, how they resist it and what they do when things don’t go as planned.

We help our clients set up an effective system that allows them to identify potential issues early and react quickly. This can be achieved by having a weekly IMO meeting and functional work streams to monitor progress and escalate issues and risks to SteerCo.

Once the process for tackling problems is established It’s essential to focus on the process of execution. This means ensuring that the team understands what it’s required to achieve and how it will be measured, and when. Also, it should clearly state accountability (i.e. the ownership of end results) and decision-making authority for the entire company.

It is essential to ensure that the CEO and upper management are able to devote at least 90 percent of their time focusing on core business concerns and avoid getting distracted by integration tasks. One method to achieve this is to choose a strong leader to lead the Decision Management Office (IMO) who will be able to triage decisions and manage the work streams. This person may be from the acquired company or be a rising star within the newly formed organization with the backing of their boss.

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