Following a merger, management is under intense pressure to address challenges such as defining integration priorities and quickly identifying and capturing synergies. In addition, special attention has to be paid to addressing cultural change and controlling business risk in the new organization.
Key considerations include:
- What is the best way to most quickly realize the strategic objectives of the merger?
- What must be integrated quickly, and how to draw down on synergies?
- How to best integrate two different cultures and deal with conflicts between them?
- How to retain key talent during and beyond the integration process?
- How to keep employees focused on business and customers during the integration process?
It is widely known that roughly half of all mergers and acquisitions fail to create shareholder value and that about one-quarter actually destroy it. It is also no secret that there are tried and tested methodologies for successfully integrating companies. So why do so many deals—especially those that appear to offer substantial cost and revenue synergies—produce such disappointing results?