It is well-known in the business world that a properly planned merger and acquisition can provide tons of value. This is especially true in times of an economic downturn where there are numerous deals on the market. If done right, your firm can double, or even triple, the return on the investment. Yet, you have to complete a successful integration first. Find out what you need to know to have the best chances at a winning merger or acquisition.
Know What the Deal Is About
Everyone aiming for a successful acquisition needs to have clearly defined goals from the start. You should be focusing on how the deal will support your company’s core mission. Not only will this clarify how the money will be generated, it will also lush out potential pitfalls beforehand. Creating a clear deal thesis will help guide your firm through the entire transition process.
Be Sure to Integrate People As Well
When you acquire an organization, it automatically mixes two different work forces. This can be a good thing or a bad thing depending on how you handle it. It is best to select employees who can fall in line with the central goals of the acquisition. These members should be selected from both firms. You should also be sure to fill the leadership positions as soon as possible. Doing so will give you a strong backbone from which to implement further changes. The right acquisition integration planning requires filling roles quickly to maximize retention.
Integrate Right Away
Acquisition integration planning should begin as soon as the deal is announced. In an even more ideal world, your firm should start this planning before announcing that a deal has been made. You can never start planning too early for an acquisition. In fact, the large majority of big decisions should be done at this point. This will make the rest of the process as smooth as possible.
Planning to Plan
As you can see, creating an effective plan is the first step in a successful merger or acquisition. It goes without saying that the average acquisition is quite complicated. Increase the chances of obtaining a high return by putting a solid plan in place.
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