A merger or acquisition can be a powerful method to boost growth and expand reach by using new channels and customer segments or other key assets. By joining the retail presence of one company with the distribution channels of another creating an array of products that caters to different age groups. It can also open up new market opportunities, for instance by merging with or acquiring an organization that operates in a certain geographic region.
Companies that fail to manage M&A integration well risk destroying value through consuming too much time and attention. They may lose talented employees who feel disenchanted by a new business and decide to go to pursue other opportunities. In addition, poorly managed system migrations may distract managers and divert their attention on the business at hand.
In M&A integration one of the most common mistakes is a desire for transferring acquired systems and processes too quickly in order to gain cost savings and other synergies. This can cause major disruptions to customers as well as lots of extra work.
It is more effective to establish clear guiding principles and the degree of integration required to meet them. This allows leaders to develop strong relationships with the functional work stream leads as well as IMO to encourage transparency and accountability as well as communication about the program. It’s also essential to set up a weekly schedule between IMO teams and the SteerCo to encourage daily progress, escalate risks and solve issues. This gives the IMO the accountability and transparency they require to guide the execution of integration plans.