The successful integration of an acquisition is a complex set of tasks and involves the successful co-ordination of a multi-disciplinary team. It involves careful planning and a focused execution to maximise value. There is no standard approach to integration, but a clear understanding of what drives value will provide a clearer path.
An acquisition which at its core is driven by the desire to add new technology or skills will have a different integration approach to one in which the deal is driven by the synergy of soaking up capacity from existing systems, processes and resources. The first will have added emphasis on securing, retaining and assimilating the skills, the second will focus more on absorption and minimisation of disruption.
Key to a successful integration are:
- Communication of the strategic rationale for the combination, creating a clear vision of what the merged entity will look like to customers, suppliers, employees and other relevant stakeholders
- Ensuring that what is learnt from the (big picture) deal phase, including value assessments and due diligence is built into the (detail of the) integration plan
- Development of a tactical approach to each business unit and functional area, with a focus on high priority, high value initiatives, with appropriate resources to achieve them
- Understanding the key risks of the transition and building steps to manage them
- Establishment of clear milestone goals, with accountability for their achievement built into performance assessments
- Communications which not only make the vision clear, but talk about timing, what actions are expected and unknown factors
The 100 Day Plan involves the clear communication of expectations and accountability:
- What happens at closing of the deal and clear planning for Day 1
- It provides a map to chart the transition phase