Five things to consider for your merger integration

By - July 22, 2015

Approximately one-third of all integrations don’t live up to the acquirer’s expectations. What should you do to assure a successful merger?

Here are five essential steps to a more effective merger integration:

  1. Integrate your cultures – This should not be underestimated. It is one of the most important challenges of making a merger work, yet it is often a lower priority as there are a number of pressing operational and tactical items to achieve within a relatively short timeframe. Creating a plan to merge the best aspects of each company’s culture will benefit everyone in the end.
  2. Start early –The best time to begin planning integration-related activities is during due diligence phases. Starting early allows time for unforeseen issues to be brought to light and resolved.
  3. Be honest – Do you have the right resources to plan and execute all the components a merger may entail? Take a deep look at your organization to make sure all the proper people, tools and advisors are in place to help make the process flow smoothly.
  4. Be strategic – Take a step back to envision impacts on customers, vendors, employees, competitors and stakeholders. This is one opportunity where over-communication is welcome as many uncertainties come with a merger. Successful mergers leverage a cross-functional, coordinated process, not a series of discrete steps.
  5. Take care of your talent – Identify and put an action plan in place to retain key talent and resources early to avoid flight risk. One of the key reasons mergers fail is when employees are not brought into the vision and incented properly. Identifying and making a concrete plan to keep key staff will set a solid foundation to a smooth integration. Merger integration is a complex process; therefore, a comprehensive plan should be developed and implemented to manage difficult decisions and help maximize the potential of the new organization. The main objective is to move quickly without missing opportunities and with a minimum number of disruptions to the organization.

Merger integration is a complex process; therefore, a comprehensive plan should be developed and implemented to manage difficult decisions and help maximize the potential of the new organization. The main objective is to move quickly without missing opportunities and with a minimum number of disruptions to the organization.

To find out more about this or other ways that McGladrey can assist you with your business needs, contact McGladrey’s management consulting professionals at 800.274.3978 or email us.

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