Keep or Change: Post-Merger Decisions


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    Babak Rowshan

    How should companies determine which business aspects to retain or modify during post-merger integration for optimal strategic fit and competitive edge?


    I read your post i think you want to know about for merger but i dont know because i am not interested at any thing so you can go on google and search same as it is.

    Calgary Home Health Care Services

    Mark Butikofer

    Hi Babak,

    The determination of what aspects of a target company to retain vs. change in integration really is based upon the integration strategy and target operation model (and underlying business case for why company was purchased).

    An overly simplistic guideline would be that any non-differentiating capability of the target company should be “rationalized” to determine whether the capability can be more cost effectively produced by the parent company – e.g. shared services, or alternate source. Oftentimes the core capabilities for why the company is being acquired should be retained or assimilated into the parent company.

    The real caveat is that an acquired company is not a mindless, passionless set of capabilities, but rather is made up of people. Any decisions of what could / should be changed should significantly factor in the human dimension, and ideally include target leadership in the integration planning so that they can be part of the change planning & communicators,.. and not simply the target.

    Any acquisition provides the opportunities of synergies & improvements. What should change should be driven by synergy and improvement opportunities. In some cases, the changes will occur in the parent company because of what the acquisition brings to acquirer.

    Change management strategy, planning & execution are critical!

    Marcia Sauzek

    This determination should initially use the strategic intent for the transaction as a guide. Additionally, using a lens of incrementing value vs destroying value for NewCo can be very helpful in prioritizing and ultimately making decisions.

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