A strong decision-making system is required to make the right decisions to coordinate work streams and set the tone for a unified company. The structure should be led by a highly skilled individual with solid leadership and process abilities. Perhaps a rising star within the new company or a former executive from one of the acquired companies. The person who is chosen for this role must be able to devote 90 percent of their time to the task at hand.
Lack of coordination and communication delays integration and hinder the combined entity from achieving quicker financial results. Financial markets expect significant and early signs of value capture, and employees might see the delay in integration as a sign of instability.
In the meantime, the base business must be kept in the forefront. A variety of acquisitions can result in revenue synergies, which require coordination between business units. For instance, a long-standing consumer product company that was limited to a handful of distribution channels could merge with or purchase a company using different channels to gain access to new segments of customers.
A merger could also distract managers from their jobs because it consumes too much attention and energy. The business suffers. In the end, a merger or acquisition can fail to address issues with culture – one of the most important factors in employee engagement. This could lead to problems with talent retention and the loss of key customers.
To avoid these risks, you must clearly define what financial and non-financial outcomes are expected and when they will occur. To ensure that the integration taskforces can move forward and meet their goals within the timeframe it is essential to assign these objectives to each of them.