A well-integrated company requires an efficient decision-making system to make decisions, coordinate work streams and set the pace. The structure should be led by a highly experienced individual with a strong leadership capability and process–perhaps an emerging star in the new organization, or a former leader from one of the acquired companies. The person chosen for this position should be able www.reising-finanz.de/personal-property-insurance-buying-guide/ to devote 90 percent of their time to this job.

Insufficient communication and coordination delays integration and prevent the merged entity from achieving quicker financial results. Markets expect the first signs of value capture. Employees could interpret a delay as an indication that the business is unstable.

In the meantime, the core business must remain the priority. A variety of acquisitions can result in revenue synergies that require coordination among business units. For instance, a well-established consumer products company who was restricted to only a few distribution channels could merge with or purchase a company with different channels in order to gain access to new segments of customers.

A merger can also distract managers from their job by consuming too much energy and attention. The company suffers as a result. In the end, a merger or acquisition may not address issues with culture – an important factor in employee engagement. This could lead to problems with talent retention and the loss of customers who are important to you.

To minimize the risk to avoid these risks, clearly define what financial and non-financial results are expected from the deal, and when. Next, you must assign these objectives to the individual taskforces involved in the integration process to ensure that they are able to achieve their goals and ensure that one company is integrated in time.