The most important rule in M&A is to make sure that you don’t devalue value, which is why you need to take the time to build your processes and plan for when things go wrong. I’ve found that the most frequently-repeated issues are people-related – how they react to changes or change, how they resist it, and what they do when things don’t go as planned.
We assist our clients to set up an effective system that allows them to identify potential issues early and react quickly. It could be that, for instance, holding a weekly meeting where the IMO and functional work streams evaluate progress against the plan, and escalate risks and issues to the SteerCo.
Once the method of addressing issues is established, it’s important to concentrate on implementation. This means ensuring that the team knows what it’s required to achieve, how that will be measured, and by when. It also includes clearly defining accountability (i.e. ownership of the end results) and decision making authority across the entire integrated business.
It is essential that the CEO and other senior managers can devote at least 90% of their time on their core tasks and not be distracted by integration activities. One method to achieve this is to choose an experienced leader to head the Decision Management Office (IMO) that can make decisions and oversee the work flow. This person may be from the acquired company or be a rising star in the newly merged company who has the backing of their boss.