Regulators, stockholders, and market analysts often resist proposed acquisitions on the basis of history. Specifically, 80% of public
merger and acquisitions over the last 10 years have failed to achieve forecasted financial results. In the majority of cases, the
failure is directly attributed to the lack of a proven post integration process.
Very few corporations have a tried-and-true
successful post acquisition management process to follow, and without measurement of the transformation from a separate unit into
a new corporate structure, progress cannot be managed. Frequently, the business unit managers accountable for acquisition results
are usually swamped with running their current businesses let alone handling all new issues concerning serving customers, production,
logistics, quality, reporting, budgeting, staffing, resource allocation, and channeling information. This prevents corporate leaders
from receiving true progress information until perhaps a year late which then requires crisis management.
are justified on the potential value they are anticipated to create. Many acquisitions look good on paper, yet value is not created
until AFTER the acquisition. Value is achieved when people from the combining organizations collaborate to create the expected benefits.
This collaboration relies upon the will and ability of people to work together towards a new strategy. However, the acquiring management
is at risk exposed to the difference between potential value and the real value actually created.
One of the biggest obstacles
in the way of the merging of two organizations is organizational culture. When mergers fail employees point to issues such as identity,
communication problems, human resources problems, ego clashes, and inter-group conflicts, which all fall under the category of “cultural
differences”. One way to combat such difficulties is through cultural leadership. Organizational leaders must also be cultural leaders
and help facilitate the change from the two old cultures into the one new culture. This is done through cultural innovation followed
by cultural maintenance.
Our proprietary Post Merger Facilitation (PMF), conducted by our Integration Facilitators, cements the
links between strategy and operations by tying performance metrics into management actions. We specialize in helping organizations
develop and maintain a competitive advantage and cultural emergence. Our Inside-Out Method closes the gap between current and desired
performance by aligning processes with people and strategy.
We would like to earn the right to work with you and help expand
your company. At the very least, we’ d like to share some ideas that could ensure success.
Key Areas of Post Merger Facilitation:
Alignment of strategic goals
Improved market share
Greater innovation and use of intellectual capital
Improved market presence
of key customers and employees
Penetration of new markets
Ask us to how "GAP"TM Implementation can help you.
Copyright 2016 The SOS Group Inc, Houston, TX Phone: +1 (713) 249-9569