Step 5: Develop Post-Merger Risk Management Plan

We need a more colorful classification system for how companies go about the merger integration process. You know, a new nomenclature. So I sat down and did some reflection.

Going through my memory bank, I pulled up some of the most common patterns … 
 

Nobody in their right mind expects merger integration to be a trouble-free process. Simply put, combining organizations is a scratchy drill …

By Price Pritchett

Employees find lots to gripe about when they’re being acquired and merged.  Looking back across my three decades of consulting on M&A, though, one complaint stands out clearly as people’s #1 gripe …
 

The journey from “deal announcement” to “integration complete” is a hazardous trip. You expect problems. But the most treacherous terrain often takes executives by surprise ...
 

The merger is a major distraction for people in the acquired organization. It interferes with their work focus and undermines job commitment. This, plus the destabilization that is simply generic to mergers, causes productivity to take a damaging hit during the transition period ...

People often overrate themselves, not in rocket science, but in other areas of their lives more familiar to them ...

While you wrestle with that question for a minute, think about how much money is at stake. Then consider the number of people in the two companies ... all the careers that are involved ... the lives you’re playing with here ...
 

In attempting to realize the true value of a merger, the buyer must coordinate a smooth and efficient post-merger integration process. Important challenges need to be addressed in three areas – people, places, and technology ...

There’s an old line that says, “If mama ain’t happy, nobody’s happy.” Adapting that notion to the world of M&A, I’d say, “If Sales ain’t happy, nobody’s happy …"

The following missteps occur even in well-run companies with highly capable executives at the helm:

1. Lack of a clearly defined Integration Manager ...

The shockwaves from a merger can badly disrupt day-to-day operations. The tremors start when employees worry about how they’ll be affected by the deal, fret over a myriad of integration problems, and commonly waste time waiting for answers or just being confused about how to proceed with their work. Overall, business suffers ...

By Price Pritchett

A man walks into a bar and says, “Give me a beer before problems start!”  He downs it and orders another, saying, “Give me a beer before problems start!”  The bartender looks confused.  This goes on for a while and after the fifth beer, the bartender—now totally perplexed—asks the man, “When are you going to pay for these beers?”  The man says, “Ah, now the problems start.” ... 
 

Even though your deal may look great, you should be aware of some of the common post merger integration challenges you may face. So let’s take a look at what could prove to be very painful if you don’t manage your merger properly ...

A flawed integration process can be terribly expensive, yet the costs of the mistakes are seldom measured by acquirers …