Much is said about all the factors that involve an M&A operation, but the integration between the two companies involved in the transaction is not always approached or planned correctly, which means that many mergers or acquisitions end up not having the expected result, even if every step of the process was performed correctly.
If you are an entrepreneur and want to acquire or merge with another company, you must understand that as important as the M&A operation itself is the need to plan the post-acquisition and ensure that the companies involved in the business unify their purposes and follow a harmonious path. In this article, we brought some information that can help you. Follow the reading.
Integration starts with good communication
Any merger or acquisition is loaded with expectations for the people who make up the companies participating in the business, especially the employees of the organization that was acquired.
After an M&A operation, it is common for many of these professionals to feel insecure about the new directions and even fear that the organizational changes that are to come will affect their jobs, which could end up fueling tensions and creating an unsustainable environment.
Therefore, the first step for this integration process to occur without any setbacks is transparent communication, clearly addressing each step that will be taken from then on.
New objectives, future perspectives, changes in the organizational culture and, mainly, the reasons that led the merger or acquisition to take place must be communicated to the professionals, to prevent them from drawing their own or hasty conclusions.
A point that cannot be overlooked in this communication strategy is the company’s official position regarding a new configuration of positions, career plans and possible dismissals, which usually occur when companies go through an M&A operation.
Know the acquired company’s potentialities and gaps
When carrying out a merger or acquisition with another company, it is essential that the acquiring organization establishes an immersion process to know all the details that involve the operation of the business that was acquired.
Any strategy or expansion plan will only be robust if you have a broad knowledge of the company’s operations, its financial situation, the current organizational culture and its capacity for growth.
For the integration to take place effectively after the consolidation of the M&A operation, it is necessary to have a clear understanding of what changes will be brought about by the merger between the companies and what this may have a positive or negative effect on the progress of activities.
Within this X-Ray, it is also essential to identify all existing gaps and failures in the acquired company, so that they can be worked on so that the integration process also brings improvements to existing processes that can generate positive results.
Work on a new organizational culture
Even if the companies involved in an M&A transaction belong to close segments, it is inevitable that each of them will have their own organizational cultures that could collide after the two businesses become one.
Therefore, an integration plan between two companies undergoing an M&A operation cannot fail to contemplate the consolidation of a new organizational culture, but in a very calm and gradual way so that people can absorb the changes.
It is important that the implementation of this new line of work makes a point of intersection between the organizational cultures of each company so that, based on this, a model can be established in which all professionals are on the same page and work within a common purpose. .
Integration must be carried out alongside employees
A merger and acquisition operation cannot make the mistake of disregarding the human factor that makes an organization pulsate. Some of the main causes that lead to the failure of a merger between companies are directly related to conflicts between people and work groups.
First, it must be understood that acquiring another company is taking control of a car that was already moving before you arrived, driven by people who were used to making it go a certain way.
Therefore, arriving wanting to change all operational processes at once can be a shortcut to ruin everything and discourage professionals who can assume an important role in this new moment and even build great careers after the merger or acquisition of companies. Remember: integration and imposition are two words that do not dialogue.
Acquainting employees with this new moment is the best way to make them participate in this entire integration process. Promoting meetings, immersions, onboardings and, mainly, establishing a constructive dialogue about possible changes, can make the employee one of your main allies.
The importance of Due Diligence in the integration between companies.
When acquiring a new company, managers must be aware of one of the most important steps in a merger and acquisition process, which will also play a key role in ensuring that the integration takes place smoothly: due diligence.
Before starting an integration, it is necessary to know in depth all the aspects inherent to the company being acquired, and it is a well-done due diligence that will allow an in-depth study of the company’s situation, an evaluation of the operation of each sector, in addition to legal and financial information.
Preparing an integration plan without having all this prior information increases the chances that the M&A operation will end up not being successful, as happens with many companies that do not pay due attention to the post-acquisition process.
From a human point of view, due diligence also helps to create an environment where integration takes place with the lowest possible setback rate among the company’s employees. In addition, it also helps to identify talent, set growth goals and have a detailed view of which employees can be better used after the business is merged.
For an effective due diligence, it is important to have the help of a company with experience in the M&A market and that brings in its portfolio several mergers and operations carried out in different parts of the world. 3Capital brings together a team with more than 30 years of experience and is ready to participate in the expansion of your business.
