Integration failure
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Does anyone have direct experience in a failed integration between merged companies? Can you share some insights?
Hi Niccolo! Unfortunately there are plenty in the region I work. I’m currently pitching for a piece of work to solve some aspects of a failed integration in a telecom business. Happy to discuss in private since these topics are sensitive.
How do we define failure? I’ve seen two acquisitions that have not gone stellar. In both cases the management team was focused on the deal and did little preparation for the post-deal integration. Organizational experience and planning as well as dedicated functional leads would have made a big difference towards success.
If we define failure as the inability to meet pre-merger/acquisition KPIs once post-merger activities have concluded, then I have seen moderate failure. Post merger activities have been monitored closely, but a lack of priority beyond the commercial success of the acquisition has caused delays and increased costs in terms of time and priorities. I have found. so far, that due diligence is often limited in scope, pre-merger forecasts are often tied to closely to assumptions and estimations with little cross-functional input, and post-merger designs are poorly actioned. The last of these often causes the most trouble. Delays in ERP integration, product documentation or history, and user training and functionality round out some of the gaps in a successful merger in my experience.
Came across a big conglomerate who bought a SME for it’s talents (3-4 people) and projects on hand. However, the talents couldn’t quite keep pace with the demand and speed of how things evolve in a conglomerate. Eventually, the talents left after their lock in period and didn’t bring in new projects post merger.
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