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POST Merger Integration

Why do most mergers fail to live up to expectations?  Is it the finances or the technology?   Rarely.   Mostly, it is poor execution of the actual combining of the companies involved.

Merger failures usually revolve around people issues:

  • LOSS OF KEY STAFF
  • CULTURE CLASH
  • FUD: FEAR - UNCERTAINTY - DOUBT
  • POOR COMMUNICATION AND INTERACTION AMONG EMPLOYEES OF THE MERGING ORGANIZATIONS

Companies participating in joint ventures, strategic alliances or in turnaround situations also face these issues.

 

Most acquirers soon realize integration is an arduous task that fundamentally differs from other administrative and operational processes Integration tasks:

  • Are infrequent, and most of the people involved change every time
  • Vary greatly, none is like the other
  • Have ambiguous links between decisions, actions and results

When buying "used" companies, there is never a perfect fit.  Thus, every merger creates some value destruction.  The key to minimize this loss is to go into a deal knowing what to keep and develop and what to divest.  Any lingering on such decisions can only make the value destruction greater.  Having a clear purpose and not overpaying are basic success drivers in most mergers, but that is not enough.

 

At J. Alden Consulting Group Inc., our practices incorporates four more elements:

  • A coordinated plan for all activities and functions involved
  • A compelling pace for bringing the separate units together and starting to generate the returns that are dormant
  • Exciting people to engage in the new venture and its new opportunities
  • Controlling the process at every stage, which involves keeping the momentum going by tearing down obstacles, by servicing customers, and keeping the competition at bay

With over 100 integration specialists across the country, our business consultants can help make your integration successful at the most crucial times the first 100 days and the first year.  We also help with long-term continued success during the second and third years . Contact Us for a free consultation.

J. Alden Consulting Group Inc. a professional business analysis and business consulting firm.

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