April 20, 2020 at 7:11 pm #109528
What are some lessons learned that you have from M&A integrations that could have went better?April 27, 2020 at 8:28 pm #109676
One observation is the lack of follow through on the criteria for success after the closure. The retained employees stayed for a year per the retention agreements, and some stayed even longer. But there was a mass exit of retained leadership because the next level set of goals and objectives were not established. There was no investment on new product development, no decisions around a new roadmap or r&d investment for over a year. As a result employees remained in a state of uncertainty.
Per the cultural integration material, it would have been great if the organization leveraged the resource pool to accelerate formulation of new ideas or resource the priority objectives utilizing skills from the acquired company. Also a revised common vision, objectives, metrics for the new organization would have been beneficial. There was inevitably a lack of alignment in these areas for the leadership in the acquiring company as most of them moved out or were replaced in their roles a year later.
A cohesive vision, mission, and objectives that was translated across BU’s and functions of the new organization would have been beneficial, and following through on how these objectives are met with the new organization.May 8, 2020 at 11:20 pm #109957
Bradley D. SotoParticipant
A few lessons learned from prior integrations include:
(1) Ensuring that the integration team must be formed as soon as the company decides to put together the initial terms – this allows for the members of the integration team to be closely aligned with the deal team, including having knowledge of the deal terms’ provisions and their “intent” which impacts integration activities
(2) Merger synergies must be understood well in advance of closing by the integration team, especially key assumptions made that may, later, during integration prove to not be true
(3) “Rules of Engagement” for the integration team must be established, including decision-making authority to deal with integration issues requiring attention (see #2)June 1, 2020 at 7:20 pm #110511
I think one of the most important lessons learned from past integrations was to ensure communication is constant and consistent! There is nothing worse than hearing two different versions of the same thing and it can be extremely frustrating for someone new coming into the company.November 5, 2020 at 5:42 pm #114531
Two lessons learned are 1) know your strategy prior to deal close (full or partial integration, etc) and create a PMI 100-day plan to execute that strategy. Trying to determine where you want to be 6 months after deal close is very disruptive. and 2) communicate, communicate, communicate with the target company – they deserve to know what is happening in both short and long term.November 16, 2020 at 3:34 pm #114784
Getting senior management to be more open about their intentions or creating a culture that is built around constant/expected M&A change.
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