A fundamental rule in M&A is to ensure that you don’t destroy value, so you have to take the time to design your processes and plan carefully to deal with the possibility of things going wrong. I’ve noticed that the most frequently-repeated problems are relating to people – how they react to change or change, how they resist it and what they do if things don’t go browse around these guys according to plan.
One of the key things we do for clients is to assist them in setting up a system that allows them to recognize potential issues early on and address them promptly. This can be achieved by holding an annual IMO meeting and functional work streams to review progress and escalate issues or risks to the SteerCo.
Once the method for tackling problems is established It’s crucial to concentrate on executing. This means ensuring that the team is aware of what it’s expected to accomplish, how that will be measured, and by when. It also means clearly stating accountability (i.e., ownership of end results) and decision-making authority for the entire company.
It is essential that the CEO and senior managers are able to spend at minimum 90 percent of their time focusing on core matters and not be distracted by integration activities. It is best to designate an executive who will manage the Decision Management Office and coordinate work streams. This can be someone from the organization that acquired the company, or it can be an emerging star within the newly merged business that has the backing of their boss who is willing to make this commitment.
