Stratfield in Zwolle: Werken aan waarde voor aandeelhouders

Part III

Mergers and acquisitions: the integration process

The acquisition has been completed. It’s now time for the next step: the integration of the target company into your own company. You should also bear in mind that the first hundred days after a takeover are crucial.

Attention

An integration process is complex. It causes a considerable amount of upheaval within the acquiring company and the acquired company. Employees wonder whether or not they can stay and the management is confronted with the challenge of achieving the right synergy. Research has shown that awareness of cultural differences, a satisfactory plan, clear communication and concern for the staff are vital to the long-term success of the takeover.

The right team

An integration process can be set up as a project, including a project team. Experience shows that the right composition of the team is important. For example, seniority in the project team is required, especially as unpopular measures will have to be taken. The project team should also be well informed about the goals of both organisations. Only then can the team work towards the same ultimate goal.

Performance

We recommend that the monitoring of performance, however difficult that may be, should start straight after the takeover. Perhaps you are going to operate in a larger market or even a new one where you are not yet sure of the rules of the game. It may also be that some things are not proceeding as you would like, Or that some things are proceeding even more quickly than you had expected. It’s a good idea to monitor all these issues so that you can quickly make any adjustments where necessary.

Communication

Perhaps one of the most important success factors during an acquisition is communication. This begins as soon as the impending acquisition has been made known. Always communicate this clearly and unambiguously to all the parties involved such as staff, suppliers and stakeholders. Involve them in the process and communicate clearly about the steps that are going to be taken. Also mention the milestones. In this way, you can ensure that interested parties remain involved in the procedure, meaning that the integration process can proceed more quickly and satisfactorily.

Value creation

As soon as integration begins, you can begin working on synergy by integrating job positions or business units. It is also important for existing and new employees to get to know one another quickly and to familiarise themselves with each other’s culture. Focus attention on matters such as working conditions, diversity, openness, job pressure and the style of management within both organisations. Perhaps you have access to larger or new markets as a result of the acquisition. Or new product-market combinations can be created. In this way, new or existing markets can be opened up.

Do you need professional support?

A professional party with experience in the field of integration can contribute to a solution for a proposed acquisition. Are you looking for a company to acquire? Or are you perhaps on the point of selling your company? Get in touch and let us know how we can help you. You can find our contact details here.

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