Post-merger integrations can go off the tracks before they’ve begun. What are two warnings you’ve seen that say – “we have problems coming in this PMI”? From a recent engagement I completed, the first was that the company owner did not think about integration until one year after the deal closed and could not communicate specific and measurable synergies expected from the acquisition.
I can’t think of two off the top of my head, but one certainly comes to mind. Our firm acquired this company through a brokered process. So, the communication/interaction directly with the business owner was lacking as most of our communications were filtered by the broker. What ended up happening after the deal closed, was we found that we didn’t work well with the owner (who was staying on in a leadership capacity for a considerable period of time). This created strife in the business and difficulty integrating, and eventually we lost some key customers as well. The lack of relationship with the owner did not go unnoticed by our firm prior to close, but it was a risk we didn’t give adequate attention to.