How to Manage M&A Integration Well

A merger or acquisition could be a powerful way to accelerate growth and extend reach by leveraging new channels https://reising-finanz.de/ customer segments, channels, or other key assets. By merging the retail presence of a company with another’s distribution channel it can result in an extensive product range that caters to different age groups. It also opens up new markets, such as by acquiring or merging with companies that operate in a specific geographic area.

Companies that don’t manage M&A integration properly risk losing value by consuming too much time and attention. They may lose talented employees who feel disenchanted by a new organization and decide to go to other opportunities. Additionally, poorly-managed system migrations can cause confusion for managers and derail their focus on the ongoing business.

A common error in M&A integration is the desire to migrate acquired systems and processes too quickly in order to gain cost savings. This can cause major disruptions to customers as well as lots of extra work.

It is more effective to establish clear guiding principals and the degree of integration required to achieve them. This allows leaders to establish strong relationships with the functional work stream leads as well as IMO to ensure transparency, accountability, and communication about the program. It is also crucial 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 implement the integration plan.

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