What are success factors in general?

Success factors influence the success of a merger integration project. Success factors can be described by:

  • influenced object (employees, revenue stream, timeline)
  • effect (retention of employees, more revenue,faster completion)
  • measures to support (increase salaries, hire salespeople, provide more budget)
  • tracking, e.g. by Key performance indicators (employee number retained, revenue, progress of project)

What are the success factors in merger integration?

By looking at a large number of successful and non-successful merger integrations you can identify the following success factors for merger integrations. The success factors are classified to be:

  • within the acquiring company,
  • within the acquired company,
  • between the companies,
  • in the business case for the merger,
  • environmental factors.

So let us list some of the important factors.

Factors within the acquiring company

  • M&A capability maturity

how well can the acquiring company integrate a target? it goes in three dimensions: number of people in corporate functions, amount of M&A experience in the acquiring company, number of dedicated M&A resources. for more information click here.

  • Integration plans in place before close

semper preparatus. you cannot execute when you have no plan to execute, it is simple but true and holds for acquisition integration, too.

  • Blueprinting workshop in place before close

if possible, you should work with the target to check your integration plans and create a joint plan. the advantage is buy-in from the target and you save time to discuss and agree on plans post close.

Learn more in the workshop and in part 2 of this blog on success factors.....

(C) Dr. Karl Popp 2016