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 managed 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 firms. Ideally, the https://reising-finanz.de/ person selected for this position should be able and willing to commit 90% of their time to this task.
Insufficient communication and coordination hinders integration and hinder the combined entity from achieving rapid financial results. Financial markets anticipate early, substantial signs of value capture. Employees could consider a delay to be an indication that the company is in trouble.
In the meantime, the base business must be kept in the forefront. A variety of acquisitions can result in revenue synergies and require coordination between business units. For instance, a reputable consumer products firm that was restricted to only a few distribution channels could merge with or purchase a business that uses different channels to gain access to new segments of customers.
Another risk is that a merger could consume too much of the attention and energy of a business, distracting managers from the business. The company suffers as result. Then, a merger or acquisition might not be able to address issues with culture – an important factor in employee engagement. This can cause problems with retention of employees and the loss of key customers.
To minimize the risk, you must clearly define what financial and non-financial goals are expected and when they will occur. To ensure that the taskforces for integration are able to advance and achieve their objectives on time it is essential to assign these objectives to each of them.