A fully integrated company needs an efficient decision-making system to sort out decisions, organize work streams and set the pace. The structure should be led by a highly experienced individual who has a solid leadership background and process–perhaps a rising star within the new company or image source a former leader of one of the acquired companies. The person chosen to fill this position must be able to devote 90% of his or their time to the task at hand.
Inadequate communication and coordination hinders integration and stop the combined entity from achieving quicker financial results. Financial markets expect the first signs of value capture. Employees could interpret a delay as an indication that the business is in a state of instability.
In the meantime the core business needs to remain the primary focus. Many acquisitions create the possibility of revenue synergies. These can require significant coordination between business units. For instance, a customer products company that is restricted to a specific distribution channel could combine with or buy companies that use various channels and gain access to previously untapped customer segments.
A merger can also distract managers from their work by consuming too much energy and attention. In the end, the company is harmed. A merger or acquisition might not address the cultural issues that are essential to employee engagement. This can result in problems with retention of talent as well as the loss important customers.
To minimize these risks, clearly articulate the financial and non-financial outcomes that are expected from the deal and by when. To ensure that the integration taskforces are able to advance and meet their objectives on time it is essential to assign these objectives to each.