M&A Integration Processes and Issues

In M&A it is crucial to not devalue the worth of the deal. It is therefore essential to be patient and plan and create your process. I’ve observed that the most frequent issues are people-related – how they react to change and how they react to it and what they do when things don’t go as planned.

One of the key tasks we provide to our clients is to assist them in setting up a system that allows them to recognize possible issues early and respond to them quickly. This can be accomplished by having weekly IMO meeting as well as functional work streams to review progress and escalate issues or risks to SteerCo.

Once the procedure for addressing issues is established, it is important to concentrate on implementing. It’s crucial to ensure that the team understands what they’re expected to do and how they will be evaluated, and the time frame for when. It’s also important to clearly define accountability (i.e. ownership of the final results) and decision-making authority across the entire integrated business.

It is essential that the CEO and top managers can focus at least 90 percent of their time in the core areas and not be distracted by integration activities. It is recommended to choose one person to head the Decision Management Office and coordinate work streams. This can be someone from the acquisition company, or it can be a rising star within the merging company that has the backing of their boss to make this commitment.

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