BUSINESS INTEGRATION POST-ACQUISITION
After you have completed the deal and you are now acquiring/merging with the new/additional entity, the process of integrating both companies into a single entity starts.
The post-merger integration phase is one of the most difficult phases of the merger and acquisition process because there will be differences in the companies involved — differences in strategies, differences in culture, differences in information systems, and so on. So, this phase requires extensive planning and design throughout the entire organisation.
The integration process can take place at three levels:
Five Strategic Reasons Why Mergers FAIL:
The sad reality about mergers and acquisitions is that the expected synergy values may not be realised, in which case the merger is considered a failure.
The following are some of the reasons why mergers fail:
While there are many more problems—including organisational resistance and loss of key personnel—that can lead to failed mergers, a solid due diligence procedure will help to avoid most, if not all, of these pitfalls.