Are you currently focusing on inorganic growth with your company? Then you know all the opportunities, hurdles and aftermaths that arise in connection with acquisitions or joint ventures. We are often called upon to accompany companies in the post-merger integration (PMI) phase.
The integration of an organization is a complicated and multi-layered process. From the choice of the appropriate merger strategy to contract negotiations and the actual merger, many decisions have to be made.
The track record of mergers is rather sobering. Various studies of the last decade have come to the conclusion that about half of all mergers fail or that the successes realized fall far short of expectations.
The biggest hurdle? The search for relevant success factors increasingly leads to the realization that all value creation through M&A occurs primarily after an acquisition. However, most managers underestimate the pitfalls of the integration process, especially at the cultural level. A merger can cause irritation on both sides. Uncertainties and fears often arise, and there can be conflicts at management level. Processes do not run smoothly, knowledge is not shared, the common direction is not clear and leads to conflicting goals among employees and departments.
Buying a company is relatively easy, but integrating it or making both parts into something new, harmonizing cultures and making processes cross-functional, is all the more complicated.
Takeovers and restrictions shaken up the view of employees and in most times trigger uncertainty, fear and even loss of identification. Even though the Management often has a different view, there is always a "loss" in addition to "win" - or at least people who see themselves as such, because of the uncertainty in the merger process. All fears among employees must be addressed by the Leadership and Management. Otherwise, they will condense into resistance and become insurmountable hurdles in the merger process.
All fears usually increase when employees do not know: What is in store for me; am I a loser or not? Therefore, Management must take action upon this question as soon as possible. Otherwise, rumors will take the change process associated with the merger in a very poor light for employees. In case of doubt, even people who are actually among its winners will oppose the merger.
Employees often live in a state of uncertainty ,when it comes to merging, until the transition of the new structure: What happens next? Who will I become? Will my job still exist in the future?more information
Companies have recognized the need for brand management in the context of merging and invest a great deal of time and money in holistic brand development in the sense of a corporate (brand) identity.more information