After the deal - intergration rules
One of the most common causes of post-acquisition failure is poor integration.
A well thought through integration plan should commence well in advance of a deal completing, and should cover the following key points:
- Ensure senior management/executives in both the buyer and the target are part of the integration planning and delivery.
- Create a separate IT plan, covering all business critical applications – test rigorously.
- Communications – ensure there is a plan to contact staff in both organisations, customers, suppliers and investors.
- Make sure that management do not lose focus on the existing business operations.
A written plan should be agreed upon and regularly updated throughout the process. The plan must include milestones against which individuals are accountable.