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