How should the form of the M&A organization

This topic contains 2 replies, has 3 voices, and was last updated by  Paul Gray, MBA 5 months, 2 weeks ago.

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  • #109382

    From our experience and from what we see that M&A integration is very difficult in realising the synergy. Sometime it is because the leadership when the team that lead the integration fail to manage post M&A. What is your opinion about the organisation and the people involved so that the synergy during the integration will be achieved as plan.

    #109560

    Maria Villanueva
    Participant

    Based on data and my own experience as being part of the target company, a lot of emphasis and effort is given on the valuation and the closing of the deal. On paper there are synergies to be realized but because Post integration is not given a lot of effort, most companies do not realize the targeted synergies. The biggest variable and critical component on any merger is the culture and the people that provide the IP and performance needed to support growth. There has to be a proactive evaluation of the level of integration that is necessary, a strategy for integration, ensuring that the people have a positive morale, continue to remain with the company and contribute to its growth objectives. As with any change management, change metrics should be established and measured, and flexible enough to accommodate any course mitigation along the way.

    #109999

    Paul Gray, MBA
    Participant

    I agree a lot with Maria’s perspective. Far too often the Synergies are based on some sophisticated mathematical model of relationship of several variables, but no high level or absolute road map of how to get there. Realization of the actual synergies therefore will now be the combined efforts of both the target and acquirer but this now introduces the complexity of potential culture differences. Either way it requires people to realize the synergies, and consequently it is important that as a first step all the elements of change management be brought to bear on the project. Motivation, is a significant element to keep in mind to ensure that all the actors critical to the realization of the respective synergy benefit is aligned and motivated to act according to plan.

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