A merger or acquisition is an effective way to accelerate expansion and growth by leveraging new channels, customer segments or other important assets. It can unlock a more diverse product portfolio that serves various demographics, for example the combination of a company’s retail presence with another’s distribution channels. It can also create new market opportunities, such as by acquiring or merging an organization that operates in a certain geographic region.
Organizations that fail to manage M&A integration correctly risk losing value because they are consuming much time and energy. They could lose talented employees who feel disenfranchised by a new company and decide to leave to pursue other opportunities. Uncontrolled system migrations can also distract managers from their core business.
A common mistake in M&A integration is the desire to transfer acquired systems and processes too quickly to make savings. But doing so can lead to major customer disruptions and result in a lot of work with no benefit.
It is better to establish clear guiding principles and the level of integration required to achieve these requirements. This allows leaders to establish strong relationships with functional work stream leaders as well as IMO to encourage transparency and accountability as well as communication about the program. It is also crucial to establish a weekly cadence for IMO teams to communicate with the SteerCo to ensure daily progress and to increase risk. This gives the IMO with the visibility and accountability required to drive execution of the integration plan.
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