How to Manage M&A Integration Well

A merger or acquisition can be a great tool to boost growth and increase reach by leveraging new channels customers, segments of customers, or other key assets. By connecting the retail presence of one company with the distribution channels of another and a diverse product portfolio that caters to various demographics. It also opens up new markets, such as by merging or buying a company operating within a specific geographic area.

Organizations that fail to manage M&A integration properly risk losing value by consuming too much time and energy. They could lose talented employees who feel disengaged and decide to move to an alternative job. Inadequately managed system migrations could also distract managers from their core business.

In M&A integration an error that is common is a desire to transfer acquired processes and systems too quickly to reap cost savings and other synergies. This can cause major disruptions to customers as well as an abundance of additional work.

Instead, a better approach is to establish clear guiding principles and the degree of integration required to fulfill them. Leaders can establish strong relationships with the functional work stream leaders as well as IMO to ensure transparency, accountability, and communication about the program. It is also essential to establish a daily schedule for IMO teams to communicate with the SteerCo in order to promote the daily progress of the program and to escalate risks. This provides the IMO with the transparency and accountability required to drive execution of the integration plan.

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