A robust decision-making process is required to make the right decisions that coordinate work streams and set the pace for a fully integrated company. This should be managed by a highly experienced individual who has a solid leadership background and process–perhaps an emerging star in the new company or a former leader from one of the acquired companies. The person who is chosen for this role must be able to devote 90% of his or their time to this role.

A lack of communication and coordination will delay the integration and prevent the combined entity of accelerating financial results. Markets expect early, significant signs of value capture. Employees might interpret a delay as an indication that the company is in trouble.

In the meantime the core business needs to remain the primary focus. Many acquisitions can create revenue synergies that require coordination among business units. For instance, a consumer products company that was restricted to certain distribution channels might merge with or acquire one that operates on different channels and gain access to untapped consumer segments.

A merger can also divert managers from their work because it consumes too much attention and energy. As a result, the business is harmed. Additionally, a merger acquisition may not address issues with culture – an important factor in employee engagement. This can cause problems with retention of talent and the loss of important customers.

To reduce the https://reising-finanz.de/choosing-the-right-personal-property-insurance/ risk of these, you must clearly identify what financial and non-financial outcomes are expected and when they will occur. Then, assign these goals to each of the integration taskforces to drive momentum and deliver a single integrated company on schedule.