Integration of the two firms after the deal is closed is the most important and difficult task. The success of the deal depends upon the success of the integration. The integration process can be a success if the following steps are kept in mind during the process:
Clear and realistic vision: During the diligence and evaluation phase, the reason why a merger seems beneficial to both the parties emerge. This reason should be used to create a strong and realistic vision for the newly merger firm. This vision would drive the newly formed organization by providing a strategic direction.
Understand the difference: Though mergers are done because the two firms involved “fit” each other. But the integration would be successful only if the differences between the two firms are understood. The differences would be the corporate culture and value systems, levels of staff qualifications and competencies, leadership styles, operational processes and systems and tools. It would not be right to just impose a common way of functioning. Instead it would be good to identify and evaluate the uniqueness of each firm and understand what needs to be done to preserve the successful business model while creating a common platform of operation in which the two firms would compliment each other and boost the performance of the newly formed firm.
Know the people: It is very important to identify the stakeholders and leaders of the newly formed entity and understand their fears and concerns.
Define and implement the processes and tools: Enough attention should be paid to the operations and tools of each of the two organizations and ensure that they become the standard process for both the organizations. This will help in implementing more efficient systems and processes. But it is important to understand that too many changes should not be made in this area as they could lead to the failure of the integration process.
Communicate: It is very important to have a good communication strategy in the integration process so that there is a strong leadership communication. This communication should be honest and transparent to win the trust and credibility of the employees. A regular two way feedback mechanism needs to be set up so that there is sufficient input from the organization to measure how well the integration strategy is working.
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