M&A Integration Processes and Issues

A fundamental rule in M&A is to not destroy value, so you need to take the time to build your processes and prepare for the eventuality that something goes wrong. From my experience, the Web Site most frequently encountered issues revolve related to people – how they react to change, their resistance to it and how they respond when something doesn’t work as was planned.

One of the main tasks we provide to our clients is to assist them in setting up a procedure which allows them to spot possible issues early and react quickly to them. This could mean for instance, having weekly meetings during which the IMO and functional work streams evaluate progress against the plan, and escalate issues and risks to SteerCo.

Once the method for tackling issues is established It’s important to concentrate on the execution. It’s crucial to ensure that everyone knows what they’re expected to do, how they will be evaluated and when. It’s also about clearly defining accountability (i.e. ownership of the end results) and the decision-making authority for the entire business.

It is essential that the CEO and top managers are able spend at least 90 percent of their time focusing on their core tasks and not be distracted by integration tasks. One method to achieve that is to appoint an experienced leader to head the Decision Management Office (IMO) which will help triage the decisions and coordinate the work streams. This could be a person from the acquiring organization or a rising star within the merging company who has the backing of their boss to make this commitment.