Mergers & Acquisitions

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Understanding Best Mergers and Acquisitions Practices For Integration

As common as mergers and acquisitions may be, they can still be difficult for business professionals to fully comprehend and navigate, with prosperous results for their company. When it comes down to it, managing a post-merger integration can really make or break the mergers and acquisitions process completely. If business professionals take the time to be more inclusive of all employees involved and truly make an effort to make the transition a smooth one, each and every mergers and acquisitions integration will be successful.

1.    Explain How M & A Integrations Positively Effects Companies

It’s never wise to go into a mergers and acquisitions integration without some kind of explanation. When every employee of the company—new and old—is made aware of just how great a mergers and acquisitions integration is for the business as a whole, it makes the process a lot easier to adapt to. While it’s important to take into consideration how a merger and acquisition integration brings in more money for the company, it’s equally important to inform employees of the positive, non-financial results as well.

2.    Assign New Roles as Soon as Possible

Post integration, the newly combined employees from both ends of the deal might seem less-than-willing to unite as one single entity. All of these feelings aside, it is crucial for the business leaders to make concrete decisions regarding open positions. Select people from both organizations involved in the M & A integration that will excel the most—fill the top levels first. The sooner positions are filled, the better. Delaying the process will make employee issues increase, as people fight with one another about who is in charge, who will stay, etc.

3.    Create a Decision Management Office to Manage the Integration

The head of any mergers and acquisitions integration can easily fall victim to endless paperwork and templates that ultimately do nothing for the wellbeing of the newly merged business. When a Decision Management Office is employed, however, it is much easier for integration leaders to focus the taskforce on only the critical decisions that drive the most value.

4.    Stick to a Single Organizational Culture

The culture of an organization is ultimately the make or break for an employee to stay post integration. A bad organizational culture will lead to a high turnover rate and overall unhappiness among employees, while a positive organizational culture keeps employees content and highly motivated to work. Committing to one single organizational culture after the mergers and acquisitions integration has taken place—one that is a compromise and fair to all employees—will help the M & A integration run more smoothly.

5.    Set Time Aside for Employees and Reassure Them

Unless you are the one running a mergers and acquisitions deal, it can be scary to deal with the integration process—which is especially true for the employees involved, who are oftentimes uncertain of what their future might hold. Those leading a mergers and acquisitions integration must choose how they communicate wisely to their employees and make them feel as though they are valued, have a secured future working for the newly merged company and are not being discarded any time soon.

6.    Don’t Stop Moving Forward Throughout the Integration Process

Yes, it’s important to deal with necessary actions as they present themselves to you. Nevertheless, it’s equally critical to maintain momentum within both companies. Always be sure to monitor both base businesses throughout the entire integration process and focus on sales pipeline and call-center volume—the elements that make all the difference while aiming for success and larger profits overall.

Mergers and Acquisitions Integration Consultant in NJ

Speaking to a certified accountant or consultant before your next mergers and acquisitions integration is the best possible way to ensure that the business deal will run as smoothly as possible. The accountants and consultants at RMG CPA—a New Jersey based accounting firm that offers services in accounting, auditing, tax accounting and consulting for businesses—are highly knowledgeable about what it takes to run a successful M & A integration. Contact RMG by calling 973-712-5000 to schedule an appointment.