A Guide for a Fruitful Post-Merger Integration

Reports show that 70% to 90% of mergers usually fail. Many companies lose focus once they start working towards the goal of the merger besides their initial individual objectives. Managing integrated or altered operations effectively after merging is a challenge, as well.

Merging deals are significantly different, but there are various standard tips that everyone can follow to have a successful merger integration. This guide highlights crucial tips for successful post-merger integration.

Start Planning Early

It is vital to start planning even before the deal is officially announced. You can consider working with a consulting firm to come up with a strategic plan that will work for both firms. Post-merger integration consulting has helped many companies succeed after merger deals. Merger integration experts seek to get an in-depth understanding of the merger’s goal, analyze the strengths of each firm, and develop a working plan to marry those strengths and address issues.

Take time to ensure your employees understand how the integration works and how it’s going to change operations. Reports show that employees leave companies when they feel nervous about a merger. They may feel like employees from the other company may take over their jobs. So, you should include them in the planning stage to make sure that you are reading from the same script. Early planning can protect you from signing one-sided deals, as well.

Communicate with Stakeholders

It is necessary to communicate with stakeholders from both parties to explain to them the significance of the merger integration. Stakeholders should understand the benefits of the alliance to each company. Having the support of stakeholders increases the chances of a successful post-merger integration.

Decide the Areas that will be Integrated

business partnership

Another important tip that most business owners ignore is deciding the areas that should be integrated and those that should not. You don’t need to put all your business operations in the joint company. This can stress you out, and you may end up falling out of control.

For example, you can choose to integrate your production and obtain technological skills or increase your presence in the market and leave out the other aspects of your business. Pay attention to the areas that will remain standalone entities. Consider them independent entities and ensure their operations don’t mix with those of the merger.

Choose Neutral Leaders

It is quite hard to run a merger without reliable managers and corporate leaders. Fortunately, you can choose a neutral external leader to help you. The leader should not be from either company since you want to maintain neutrality. The leader may be in charge of the strategy, change management, process integration, and run the everyday operations of the joint company. This can help you stay updated on the integration processes while handling independent entities.

Merger integration should boost business and not drag its performance. It is vital to learn how to deal with post-merger operations before you seal the deal. Apply the tips discussed in this article for a successful post-merger integration.

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