5 Things to Consider During a Merger or Acquisition Integration
Mergers and acquisitions (M&A) are a common growth strategy for companies looking to expand their operations and market share. While M&A can offer many benefits, it’s important to keep in mind that the integration process can be complex and challenging.
To ensure a successful merger or acquisition, there are a number of things that need to be considered. From value creation planning to change management, post-transaction analytics, and growth goals, there is a lot to cover!
Below you’ll find insight into 5 things Stonehill always encourages clients to consider during a merger or acquisition integration. We believe that by taking the time to plan and prepare for the integration process, you can set your company up for success.
Value Creation Planning:
Value creation plans are designed to maximize the value of the business and provide returns for its investors by aligning management teams, defining revenue sources, and identifying synergies to create a unified strategy. Stonehill takes an enterprise-wide look at how the combined entity can reach the highest potential value by translating the VCP into clear, understandable, and operational objectives.
Leadership Alignment and Culture Fit:
Assess the cultural differences between the two companies and determine how to align and integrate the leadership teams of both companies by creating a support and development plan. This will serve as a roadmap to align the two integrating cultures. Strategic initiatives and aligning company cultures are driven by leadership - they spearhead managing employee commitment to the organizational change. This process can be complex and challenging, but essential to ensure that employees are engaged and informed throughout the integration process.
Change Management and Communications:
Develop a plan to manage the changes that will occur during the integration process. This included a communications plan that clearly articulates the integration process to all stakeholders. Stonehill serves as a strategic partner to reduce risk, deliver clear messaging, and build awareness and support for organizational change.
Post-Transaction Analytics:
Define the growth goals of the merged or acquired entity and create a plan to achieve them. Developing a plan to monitor the progress and success of the integration and previously determined growth goals can help drive productivity and measure performance. Leveraging analytics can ensure a successful post-merger transition on a deeper level. Stonehill creates KPIs and analytics to track the success of your transaction, allowing you to make informed decisions at each step.
Integration Management Office:
Create a dedicated integration team to oversee the integration process. IMO’s can bring unique perspectives, skills, and knowledge to the table. As a collective cross-functional team, it can ensure your integration is managed and executed on time, within the Transition Service Agreement (TSA) resulting in accelerated absorption aligned with your organization’s strategic goals.
Considering these 5 factors during a merger or acquisition integration, companies can ensure a smooth and successful process that sets them up for long-term growth and success. Contact the team at Stonehill to hear more about the work we do and how we can help you accelerate outcomes.
