A solid decision-making system is required to take decisions that coordinate work streams and establish the foundation for an integrated company. This should be managed by a highly experienced individual with strong leadership skills and processes, perhaps an emerging star in the new company or a former leader from one of the acquired companies. Ideally, the person selected for this position should be able to commit 90% of their time to the task.

Insufficient communication and coordination can slow down integration and hinder the combined entity from achieving faster financial results. The financial markets anticipate significant and early signs of value capture, and employees could interpret an inability to integrate as a sign of instability.

In the meantime, the business of base must be a priority. Many acquisitions can bring revenue synergies, which require coordination between business units. For instance, a well-established consumer product company that was restricted to only a few distribution channels could join forces with or purchase a business using different channels to gain access to new segments of customers.

Another risk is that a merger might absorb too much of a company’s energy and attention that can divert managers away from the business. In the end, the business is harmed. Finally, a merger or acquisition might not be able to tackle www.reising-finanz.de/choosing-the-right-personal-property-insurance/ cultural issues – which is a crucial factor in employee engagement. This can cause issues with retention of talent and the loss of customers who are important to you.

To minimize the risk To avoid these risks, clearly state the non-financial and financial results that are expected from the deal and when. Then, delegate these goals to each of the taskforces for integration to help drive forward and deliver a single integrated company in time.