A strong decision-making framework is required to take decisions to coordinate work streams and establish the foundation for a unified company. The structure should be led by a highly skilled individual who has a solid leadership background and processes, perhaps a rising star in the new company or a former leader from one the acquired companies. The person selected for this position should be able to commit 90 percent of their time to this role.
A lack of communication and coordination will slow down the integration and rob the combined entity of accelerating financial results. Markets are expecting early, substantial signs of value capture. Employees could interpret a delay as a sign that the company is in a state of instability.
In www.reising-finanz.de/finanzversicherung/ the meantime the core business has to remain the top priority. Many acquisitions can create revenue synergies that require coordination among business units. For instance, a well-established consumer products company who was limited to a small number of distribution channels could join forces with or buy a company that uses different channels to gain access to new segments of customers.
Another danger is that a merger can consume too much of the attention and energy of a company and distract managers from the business. The business suffers as a result. A merger or acquisition could fail to address the cultural issues that are crucial for employee engagement. This could lead to problems with talent retention and the loss of key customers.
To minimize these risks to avoid these risks, clearly define the non-financial and financial results that are expected from the deal and by when. To ensure that the taskforces for integration are able to advance and meet their goals in time it is crucial to assign these objectives to each.
