They think it's all over!

The ink is drying on the deal, the celebratory champagne corks have been popped and the sharp-suited lawyers have gone off to spend their small fortunes. The projected negotiations to thrash out a deal to buy, sell or merge with another company are finally over. Relief all around, smiley faces, back slapping, high fives cigars; done and dusted! Although through-the-night negotiations on a diet of take away pizza, poor cigarettes and instant coffee are not easy, successfully integrating 2 or more disparate entities will be substantially harder and a potential minefield.

Accountability shift.

Considerable time, effort, human resources and cash have been expended in polishing the business case of the M&A activity before completion of the deal. Elaborately crafted PowerPoint presentations and press releases tell the world about the various benefits the new relationship will deliver into the future. How far into the future is a fact sometimes glossed over in those polished internal and external communications. However, very few people involved in the M&A process up to this stage will actually be even remotely accountable for future success or possibly, failure. Importantly, companies should not wait for that ink to dry to prepare for the critical integration phase. 

Chasing the published pamphlet promises.

Whether your M&A is a local, regional, national or even a global event, here are our top 10 tips to getting as close as possible to those shiny, press release promises.

1. Team. Appoint a team to lead the change and ensure there is a Change Manager in the team with deep and recent experience in the field. The overall project must be led by someone of suitable seniority in order to make an easily accessible, two-way bridge between junior and senior groups. Avoid the temptation of selecting the team members from one merged entity only!
   
   
2. Objectives. Make your intentions and targets clear and actively receive buy-in from all parties and particularly the acquired team. If you genuinely make everyone feel part of the process you will have greater success in implementing difficult decisions later on and for sure, these will come!
   
   
3. Assets. If offices and factories are involved and your intention is to centralise/harmonise you need to approach this delicately. The 'bought company' will always assume their workplace is most at risk so all evaluations have to be transparent and honest and impartial 3rd party expert help is advised.
   
   
4. Culture.  There will inevitably be differences in company cultures but if both sides can accommodate modification towards a new halfway-house then that can be a win-win. While this is extremely difficult to achieve,  if culture is forcibly imposed on one group or another then you are likely to fail.
   
   
5. Rumour Control. Have you ever heard a good news rumour about someone? No! Most rumours are negative or critical or someone or something and they will plague post M&A integrations. If you get your communication policy in order and people feel free to raise concerns then damaging coffee machine whispers can be nipped in the bud.        
   
   
6. Communicate, communicate, oh and communicate. M&A integration worries people and worried people are not as efficient and diligent as they should  be. Invest in an easily accessible website and/or newsletter that very clearly keeps people informed on progress and the next steps. Keep them fully involved with Q&A sessions and proactively seek feedback AND take appropriate actions.
   
   
7. Keep the business going! Sounds obvious but getting distracted by integration ups and downs can severely damage your business; your new and improving business! You must keep close control on maintaining good practice in all integrating businesses through initial segregation of M&A and routine operational roles. Do not suddenly change KPIs or personal objectives, these can wait.
   
   
8. Complexity Reduction. If the businesses have similar SKU ranges then take the opportunity to understand where there are clear overlaps and where an SKU cull/harmonisation can release human and cash resources. This may be for your benefit or possibly at the request of regulatory competition bodies.
   
   
9. Constantly review. Integration is a real moving feast! Assumptions will change and plans may have to be modified and these should be embraced rather than receive critical attention. Do not be afraid to frequently revisit the original objectives and plans. If they are no longer appropriate, modify as prudent.
   
   
10. Celebrate. When significant milestones are achieved be sure to get the cakes and champers out. Reassure people that the journey is progressing on track and particularity those not directly involved in the process as they will feel the most pressure on future job security and role definition.

When you consider the amount of time and money that went into securing the M&A deal, a generous budget for successful integration will pay back extremely quickly. A degree of early planning and preparation on the actual integration will give you the chance of reaching the press release objectives – if anyone ever checks!

Help! I need somebody!

If you have any M&A Customer Service, Supply Chain or Route to Market problems or opportunities you would like to discuss, then please reach out to Enchange.com via telephone, email or live chat.