Would there ever be good reason to delay post-merger integration for a significant period of time?
There should be a strong reason and justification for delaying the post-merger integration otherwise some will be fired 🙂
No one needs delaying the post-merger integration unless there were hidden items or wrong decisions taken at inception resulting in current or future losses. Sometimes governments are delaying such integration due to conservative approaches or political reasons.
I think if the transaction is uncertain and potentially going to fall through, this would be a reasonable basis for delaying or pausing by both parties. The only other reason I can think of for a delay is if the delay/pause is driven by a legal precedent such as a local Regulator or other Government mandate.
We often delay the actual integration when we acquire – we often have the integration date be the upcoming January 1. In many reporting ways it is cleaner, it gives everyone time to communicate, plan and execute in a less risky/rushed manner. It also helps when you are looking to keep the culture of that company more in tact and is less shocking for the target company employees. It has worked for us in the past.
I think there can definitely be some reasons to delay an integration; similar to the posts above, if it makes sense with the financial year to do so, my company has chosen to take this route. Other times, we have delayed certain aspects of the integration due to the industry we are in (Construction) – and there are definitely busy times of the year where running day to day business and integration in parallel becomes too challenging and would result in failure if we chose to do so.
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