A solid decision-making system is essential to make decisions that coordinate work streams and establish the foundation for a unified company. This should be headed by a highly-skilled person with an excellent management and process ability. Perhaps, a rising star within the new company, or a former executive from one of the acquired companies. The person selected for this position will have to be able to dedicate 90% of his or her time to this task.
A lack of communication and coordination will delay the integration and rob the combined entity of accelerating financial results. Financial markets anticipate early, substantial indicators of value capture. Employees could interpret a delay as an indication that the company is unstable.
In the meantime, the business of base must be a priority. A variety of acquisitions can result in revenue synergies and require coordination between business units. For instance, a long-standing consumer products company who was limited to a small number of distribution channels could join forces with or buy a company with different channels in order to gain access to new segments of customers.
Another risk is that a merger may take up too much of a company’s energy and attention that can divert managers away from the business. As a result, the company is harmed. A merger or acquisition may fail to address the cultural issues that are crucial for employee engagement. This could lead to talent retention problems and the loss of key customers.
To avoid these risks to avoid these risks, clearly define the financial and non-financial outcomes that are expected from the deal and by when. Then, delegate these goals to each of the integration taskforces to drive momentum and deliver a single integrated company on schedule.