The purchase of a company is an enormous investment, and it’s essential to focus on the right things to maximize the value. In most cases, it’s necessary to change how the business acquired operates. This type of change is risky, but essential to achieving the value of the deal.
The process of m&a integration requires careful planning and strong leadership to successfully integrate two businesses. It is crucial to begin planning integration before closing. Make sure you are getting value early and generating the synergy.
A partner in m&a that offers integration services can help accelerate integration and ensure that it is successful. They can ease document management the process as well as provide clear instructions and effectively communicate with stakeholders throughout the process. They can also ensure that the right people are in their roles and that all resources are in place.
A crucial aspect of the m&a integration process involves determining how the company that is merged will operate by creating an operating model. While functional work stream leads will develop the specifics of the operating model, the integration leader is accountable for reviewing and validating the plan and ensure that it is in line with the objectives and allows for effective strategic execution.
The integration leader also acts as SteerCo’s ears and eyes. They will escalate issues and potential risks whenever they are required to the executive team. The integration leader should also be prepared and tactical in their management upwards, knowing when to delegate decisions to the ILT and workstreams and when to make decisions as an executive proxy.