Leading up to a transaction, buyers and sellers of companies can’t help but be enthusiastic about the endless opportunities that lie ahead. With all the synergies, growth possibilities and efficiencies to be realized; what’s not to be excited about!?
This Honeymoon phase may continue post-transaction, but as integration becomes a reality, the excitement dissipates and pressures to capitalize on expectations intensify. Although opinions may vary on the approach to post-transaction integration, all can agree; an integration strategy must be established. This strategy should include:
- Unifying management teams behind a shared purpose
- Setting priorities and time frames; aggressively following/adjusting accordingly
- Training staff for immediate concerns
- Monitoring productivity while remaining client-focused
- Anticipating and managing staff turnover
- Addressing cultural issues
- Measuring the impact of all major decisions
- Communicating throughout the process!!!
In order for a transaction to be successful, months of preparation, negotiation and bargaining are required. It’s no surprise that exhilaration typically follows a deals consummation. However, it’s equally important that buyers and sellers understand that post-transaction integration begins on Day 1, if not sooner, to ensure the new entity’s success.