Mergers and acquisitions may include various transactions like a consolidation, a merger, management acquisition, an acquisition, tender offers, and purchase of assets. All of these transactions will involve 2 companies – one company will offer to buy the other one in its entirety or perhaps just a part of its assets. Being able to understand the differences of these transactions will allow a company to have an excellent acquisition integration plan in place.
Best Practices In Merger & Acquisition Integration
First, you have to move fast because everyone is expecting changes to happen. Second, you must communicate early and frequently. For the first 100 days, consider formulating an integration plan and ensure that the non-negotiables are understood. You won’t just communicate with employees but with customers and suppliers as well. Third, you have to come up with a strategic plan for all decision making and assign integration resources. Fourth, establish a framework for measuring employee performance. Lastly, you need to focus on the priorities of the company.
Key Steps In Acquisition Integration
1. Align Strategy
2. Identify Culture
3. Dedicate Resources
4. Create Action Plans
Experts emphasized that there must be a timeline for aligning your strategy and your people so the integration will run smoothly. Also, the route of mergers and acquisition has risks and pitfalls. Hence, careful planning must be done in the execution of the acquisition and the integration phases to guarantee success.