I work primarily with companies with less than 500 employees- who do not have the resources for an IMO office or full-time integration team.
With this in mind- I am curious what some key differences are in strategy when working with smaller companies through their integration?
In my experience, the acquirer’s full time integration team has to do more of the heavy lifting during integration. This could be anything from providing additional employees to complete the day to day work, being a constant support system on the ground during integration, or provide training to ground level employees. This is helpful to not overwhelm management staff during the transition.
I completely agree with all of the above. One thing I would add is that if they are still into 3 figures in terms of employee numbers e.g. 250 I would think that they should be able to spare at least a few people to oversight the integration from their side and emphasise the importance of being fully invested in completing the acquisition.
Lack of provisioned resources to undertake PMI would make me question the client’s motives/ capability to be undertaking M&A activity in the first instance.
With smaller companies I would recommend:
– simplify integration approach
– less documentation, use Cloud tolls to support PMI activities (MS teams, SharePoint, SmartSheets, etc.)
– negotiate with management to nominate heads of departments or senior managers of departments (Legal, HR, IT, …) as functional leads for different work-streams
– negotiate with HR to add active collaboration on PMI activities to yearly goals of every employee involved
– use Agile M&A approach
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