Within the framework of the last phase 3, which is often called in the literature as post merger integration, it is necessary to go through some fundamental challenges that every company must solve on the path to a successful merger:
Instal an integration project
Our experience shows that post-merger integration can not be handled “by the way” by either the management or the operating units. Post Merger Integration requires a separate integration team and a strategically thought-out project management that leaves room for unplanned developments.
Instal a cross functional management team
A second core task in post-merger integration is the interlinking of the management organization. In our opinion, the development of a new budget and a medium-term plan play just as great a role as the interlinking of the planning and reporting processes. Both measures together provide the basis for systematically and numerically implementing of the synergies and the degree of achievement can be monitored.
Set up the management team
We recommend a selection process that cascades the entire company. At first the members of the new top management must be announced. The top management selects the executives on the next lower level of the hierarchy, until all levels are passed. It is therefore important to initiate a selection process, which is transparent and whose selection criteria may be classified as hard, but fair.
Align employee behavior
We consider the orientation of the employee behavior to the integration project as essential. Transparent and timely information creates awareness among the stakeholders of the organizational changes that arise in connection with the integration. Without this awareness, sustainable change is difficult to achieve. This is why it is important to inform about the objectives of the project at an early stage and to keep the employees continuously informed before and during the integration process.
Core task of communication is going to make the change process, the benefits and the new ways of working of all stakeholders transparent and to address questions and information in time.
Combine operational business activities
We advise you to optimally support operational management during the integration process by initiating a defined process which ensures the structural and personnel interlinking of the companies in the day-by-day business. Focusing on one’s own business is essential, which means, above all, to strengthen sales and communication to the customer in order to secure and expand the business.
Our M&A Support primarily focusses on the successful implementation of these recommendations (phase 3).