Considerable time, effort and cash are expended in calculating the business case of M&A activity before completion of the deal. Elaborately crafted press releases then tell the world about all the benefits the new relationship will deliver. However, very few people involved up to this stage in the process will actually be accountable for success or failure.
Appoint a team to lead the change and ensure there is a Change Manager in the team with deep and recent experience in the field. The overall project must be led by someone of suitable seniority in order to make an easily accessible two-way bridge between junior and senior groups. Don’t select the team members from one entity only!
Make intentions clear and get buy-in from all parties and particularly the acquired team. If you genuinely make everyone feel part of the process you will have greater success in implementing difficult decisions later on and these will come!
If offices and factories are involved and your intention is to centralise/harmonise you need to approach this delicately. The “bought company” will always assume their workplace is most at risk so all evaluations have to be transparent and honest and impartial 3rd party expert help is advised.
There will inevitably be differences in company culture but if both sides can accommodate modification towards a halfway-house then that can be a win-win. If one or other culture is forced on one group or another then you are likely to fail.
5. Rumour Control
Have you ever heard a good news rumour about someone? Most rumours are negative or critical or someone or something and they will plague M&A integrations. If you get your communication policy in order and people feel free to raise concerns then damaging coffee machine gossip can be nipped in the bud.
6. Communicate, communicate, communicate, oh and communicate
M&A integration worries people and worried people are not as efficient and diligent as they should. Invest in a website and/or newsletter that very clearly keeps people informed on progress and next steps. Keep them fully involved with Q&A sessions and proactively sought feedback.
7.Keep the business going
Sounds obvious but getting distracted by integration ups and downs can severely damage your business. You must keep close control on maintaining good business practice in all integrating businesses.