M&A Integration Processes and Issues

The principle of M&A is to avoid destroying value, therefore you need to take the time to build your processes and prepare for when things go wrong. I’ve observed that the most prevalent problems are relating to people – how they react to change and how they resist it and what they do when things don’t go as planned.

One of the primary things we do for our clients is to assist them in setting up a procedure that will allow them to identify potential issues early and react quickly to them. This can be achieved by having weekly IMO meeting and working streams to monitor progress and escalate issues and risks to SteerCo.

Once the procedure for tackling problems is established It’s essential to focus on execution. That means making sure everyone knows what they’re required to achieve and how it will be measured, and when. It’s also important to clearly define accountability (i.e. ownership of the final results) and decision making authority for the whole integrated business.

It’s essential to ensure that the CEO and senior management are able to devote at minimum 90 percent of their time focusing on core business matters and avoid being distracted by integration activities. It’s an ideal idea to select one person to head the Decision Management Office and coordinate work streams. This person could be from the acquisition company, or it can be an emerging star within the newly formed company who has the backing of their boss to make this commitment.