In M&A, it is important to not devalue the worth of the deal. Therefore, you must spend time planning and create your process. I’ve found that the most common problems are related to people – how they react to changes and how they react to it and what they do if things don’t go according to plan.
We help our clients set up the system that will allow them to spot potential problems early and to respond quickly. That can mean that, for instance, holding weekly meetings during which check the IMO and functional work streams examine the progress made against the plan and escalate risks and issues to SteerCo.
After the process of solving issues is established, it’s important to concentrate on implementation. That means making sure everyone knows what they’re required to achieve, how that will be measured, and when. Also, it should clearly state accountability (i.e. taking ownership of end results) and decision-making authority for the entire integrated company.
It is vital to ensure that the CEO and senior management can spend at minimum 90 percent of their time on essential business matters and avoid being distracted by integration tasks. A good way to do this is to designate a strong leader to lead the Decision Management Office (IMO) that can make decisions and oversee the work flow. This person could be from the company that is acquiring it or be a rising star within the merged company with the support of their boss.