Post merger integration
Any integration inevitably leads to change. Since change always represents some form of disruption, it must be designed according to a scheme acceptable to the target company.
ACCT provides assistance during company purchase and sale to support implementing the integration of the new company.
When it comes to the productivity of the acquired teams, mobilizing them, or allaying their fears, it is important to carefully proceed with the integration. The acquiring company must show determination in relation to the purchase while also proceeding with tact and finesse.
Preparation and planning:
- Create a functional organization chart
- Organize mutual benchmarking on both sides to show best practices – first for the parent company then for the subsidiary
- Initiate integration committees
- Identify immediate synergies – the so-called “quick wins”
If you want to integrate all functions of a company at once, this may cause bottlenecks that disrupt the integration process. Therefore, the priorities must be defined and a progressive approach must be followed. The following 3-step model has been tried and tested:
- Level 1: The first 6 months - generate quick wins
- Level 2: The first 36 months – functional integration
Organizational Integration Technical integration and R&D in order to bundle Know-how and Up Selling - Level 3: Human resources management
Supporting the integration
Defining an integration strategy:
Sector by sector, department by department, position by position, profession by profession, the objective is to:
- Create integration commissions and select the staff to be included, taking care to ensure that the groups are composed of the same professions and participants from the same level of responsibility. Each single person should find his/her counterpart in the other company: This should be seen as a type of mutual mentoring.
- Promote and organize methods of mutual learning
- Compile reporting
Managing integration committees:
- Developing programs
- Planning meetings
- Developing methods of conflict management
- Drawing up reports
- Support for reporting