Your Choice For Post Merger Integration Management

Several leading business publications have indicated that as much as 53% of acquisitions failed to deliver their expected results.

Consider these statistics:

  • Just 23% of all acquisitions earn their cost of capital
  • When an M&A deal is announced, a company’s stock price rises only 30% of the time
  • In acquired companies, 47% of executives leave within their first year and 73% leave within the first 3 years
  • Synergies projected for M&A deals are not recognized 70% of the time
  • Productivity is sometimes reduced by 30% within the first 4 months following an acquisition
  • The average financial performance of newly managed companies has been graded a C- by their managers

Integrating one business within another is inherently difficult and the process must be managed exceedingly well and proactively if it is to succeed. Sadly, despite the overwhelming evidence for the need for effective post-merger integration, organizations continue to create rudimentary integration plans at best.

The existence of a structured integration process, following a dedicated methodology and led by someone with experience, has proven to help organizations maximize the value of their M&A deals and yield significant results.

Coordination Is Key

All the elements of the combined organization must be fully coordinated, even while they might be taking separate actions. The post-merger integration must be managed as a fully-coordinated project with a visible project management structure.

Unless a specific person is accountable for the project’s success, the effort will be stymied by delays, false starts and confusion.

Unless the integration is planned properly and planning is begun at its proper point in the overall process, the resulting integration will contain an overabundance of issues, surprises, and wildfires and high (and possibly unmanageable) levels of risk.

Operations Must Continue

If merging organizations lose sight of the market then sales and service–the points of contact with the customer–will be come vulnerable.

Post Merger Integration

Any drop-off in customer service will be viewed as a permanent downward shift in the quality of service customers have known to expect and perhaps now demand. Management must pay special attention to maintaining and improving the standards of sales and customer service. How can they adequately, successfully manage the integration while concurrently meeting their daily operational requirements?

Let Successful Projects For Leaders manage your integration. The SPL model is process driven rather than event-driven. Our effective planning and execution can lead to improved speed to market, technical integration, employee commitment, customer focus, and overal strategic clarity.

All indications point to heavy M&A activity for the foreseeable future. The structuring, financing, and closing of a deal are only the preliminary steps. The real work comes after the deal has been signed.

A well-managed integration effort can increase the chances of success of your acquisition.

The success of your acquisition is critical. How will you ensure it meets its objectives?
The answer is simple — Contact Successful Projects For Leaders to be your integration manager.