Deal makers work hard to bring an acquisition to completion. Theirs is a world of financial assumptions, models, investment hurdle rates, and several rounds of harmonizing projections and assumptions. A successful deal in the current environment usually means that high integration expectations will be built into these acquisition models.
Operating executives, on the other hand, know that getting to the close is only the first of many steps to achieving M&A success. In sharp contrast to the financial projections and assumptions of deal making, integration is an activity focused on leading people. Integration seeks to achieve the financial objectives while acknowledging and working with the motivations, emotions and expectations of people affected by the deal. All of this takes place against a cultural background of the two companies that is not usually captured clearly at the time of due diligence.
Merger failure statistics consistently point to many leadership-related integration challenges, as a recent survey by AON Hewitt demonstrates:
We believe that every M&A deal can succeed. During nearly 15 years of assisting with merger integration, have learned along the way that when deals unravel , often it is over seemingly minor actions or decisions taken without adequately considering the consequences.
Our solution: Make all the key decisions in an integrated way and a concentrated time frame. Acquisition Solutions takes direct aim at the keys to success with three targeted, time-bound work streams:
- Quick Start – Guides executive team through key decisions critical to successful communicating.
- Plan for Results – Leads functional executives and integration leaders to define and prioritize integration actions.
- Focused Execution – Establishes and reinforces integration program disciplines.